Tag: KR

Kellogg Company Stock Code K.NYS

Outlook
Price had a sharp drop over a 3 day’s period but by 26 March price has started a recovery and has recovered to the edge of the cloud by 6 April. However price was unable to move above the cloud and has a 3-day decline since trying to break above the cloud. Both Base and Conversion lines are below the cloud, which is a hint of a bearish trend. Lagging Span is also below the cloud, which confirms the bearish trend. MACD is still bearish with both its lines below the zero line. The fast line is approaching the zero line but could be turning down, which is a hint of a lack of upward momentum. If price were to stay below $62.42, it is likely to decline to $56.80.

Strategy
$62.30                Short Sell
$56.85                Price Target
$65.05                Risk Management Stop
3 weeks              Trade Duration

Chevron Corporation Stock Code CVX.NYS

Outlook
Price declined to a low of $51.60 on 19 March and has since recovered higher to close near $86.00 last night. Conversion and Base line had a bullish crossover but price is still below the cloud. This Conversion/Base lines crossover could be a weak bullish signal which may not be able to override the main bearish trend. Lagging Span confirms the bearish trend as it is below price of 26 periods ago and also below the cloud. There is also a big price gap from $88.01 to $93.42. Unless price can move above $93.42, the trend is still bearish. MACD is also bearish with both its lines below the zero line. We do not think price can go above the upper limit of the gap. We think the gap is likely to cap price rally and bring about another decline to $66

Strategy
$90.90                Short Sell
$68.30                Price Target
$95.20                Risk Management Stop
3 weeks              Trade Duration

BP PLC. Company Stock Code BP.NYS

Outlook
Price has been declining since 6 Jan 2020 even when the DJI was making new historic high. Price declined to a low of $15.51 and has recovered higher to $25.40. The price recovery has been halted by the Base line resistance around $25.50. Price is still in a bearish trend and far away from the cloud. Both Conversion and Base lines has a steep gradient as well hinting of the strong bearish trend.  MACD has a bullish crossover but MACD is bearish and both its lines are far away from the zero line, hinting of a strong bearish trend. If price is unable to move above the $27.05, we see price going back to test the low of $15.51 again.

Strategy
$24.60                Short Sell
$16.40                Price Target
$27.05                Risk Management Stop
3 weeks             Trade Duration

Fedex Corp Stock Code FDX.NYS

Outlook
Price has recovered from the low of $88.69 but the recovery is being halted by the Base line around $127.  The Base line resistance is also the Fibonacci 50% correction point of the decline. Price is far below the cloud and this is a hint of a strong bearish trend. Lagging Span confirms the bearish trend with its line below price of 26 periods ago as well as below the cloud.  If price is unable to move above $134, we think price could be moving lower to $90 again. MACD is bearish although there is a bullish crossover in the bearish zone.

Strategy
$122.30               Short Sell
$90.80                Price Target
$130.20               Risk Management Stop
3 weeks             Trade Duration

American Airlines Group Inc. Company Stock Code AAL.NAS

Outlook
Price broke below the cloud on 21 Feb 2020 and has declined to a low of $10.01. This low could be a temporary low and price could do a corrective rally back up to the Base line resistance at $19.60. There is a gap zone from $19.05 to $22.31. This big gap zone is likely to cap price rally and cause price decline back lower again. However, we do not think price can reach this level. Rather, we are expecting price to be capped at the Base line resistance at $19.60. There is also a price resistance at this level.  MACD is still bearish although it is turning higher.

Strategy
$19.60                Short Sell
$10.10                Price Target
$24.05                Risk Management Stop
3 weeks              Trade Duration

Kroger Co Stock Code KR.NYS

Outlook
Price had reached a high at $36.84 on 18 March 2020 and has declined for the past 5 days. For those 5 days, the declines were sharp and range was larger than usual. Price broke below and closed below the cloud yesterday which could be the start of a new downtrend in price. Price also broke below an 8-month uptrend line, which is also another bearish sign. Base and Conversion lines have not had a bearish crossover as yet but both lines are close together and a move lower today is likely to lead to a bearish crossover. MACD is bullish at the moment but is moving lower.

Strategy
$28.10                Short Sell
$23.80               Price Target
$30.20               Risk Management Stop
3 weeks             Trade Duration