The Kroger Company (NYSE:KR) is trading at $48. The stock is up 4.76% after last week’s decline of 9.57%. Certainly, the stock is retracing its value. We think the stock hit the bottom and is therefore a strong buy at the current price level.
Kroger shot above $45 at the end of February when it gained by 26.86% in a single week. Last week’s declines pushed the price to $45.72 before turning upwards. The decline was linked to the confirmation of market bears. This week, the price is up and gaining. We expect the gains to continue into the foreseeable future with a price target of $65.
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Kroger hit and bounced back from the bottom of $45
Technically, Kroger triggers buying signals whenever the price touches the 50-day average. This happened last week at $46.96. Though the 10-day average slipped below the 20-day, the gains recorded this week are likely to push the 10-day average above the 20-day. This would confirm the projected price rally.
Our analysis projects that the gains for Kroger will be recorded in two waves. In the first wave, the stock will gain to $60 where it will face some resistance. This will result in a consolidation period. The second wave will push the stock to test the resistance level of $65. That wave will result in a breakout, and the stock will move to find a new high.
Summary
Investors should take advantage of the current price levels of The Kroger Company. The stock hit and bounced back from the bottom of $45. Kroger is on a bull run that will push the price to $60 and then above $65.
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Source: https://invezz.com/news/2022/06/22/the-kroger-company-is-a-strong-buy-as-it-emerges-from-the-bottom/