Kroger Stock Falls 0.65% Amid Bearish Technical Signals and Support Test

The Kroger (KR) experienced a decline of 0.65% in the most recent trading session, marking its second consecutive daily loss and bringing its two-day downturn to 0.74%. This movement reflects ongoing consolidation near recent support levels and aligns with broader technical patterns observed across multiple indicators, as detailed in the following comprehensive analysis.
Candlestick Theory
Recent candlestick patterns for The Kroger indicate consolidation within a defined range. The current price action (closing at $65.52) shows rejection near the $66.00–$66.36 resistance zone, validated by multiple upper wicks over the past five sessions. Support is emerging around $65.20–$65.30, anchored by the June 12 low of $64.47 and the June 11 swing low of $64.15. The formation of small-bodied candles with overlapping ranges over the past week suggests indecision, though back-to-back bearish closes heighten near-term downside risks if support falters.
Moving Average Theory
The Kroger’s moving averages exhibit a bearish alignment, signaling weakening momentum. The current price trades below the 50-day moving average (~$67.50, estimated) and the 100-day MA (~$66.80), confirming short-term bearish pressure. Critically, the 50-day MA is trending downward and may cross below the 100-day MA in the near term—a potential "death cross" that could amplify selling pressure. The 200-day MA (estimated ~$63.00) remains a pivotal long-term support, but the sustained sub-50/100-day MA positioning reflects entrenched bearish sentiment.
MACD & KDJ Indicators
The MACD histogram persists in negative territory, with the signal line above the MACD line, indicating sustained bearish momentum. However, the gap between these lines shows early signs of narrowing, hinting at potential momentum stabilization. Meanwhile, the KDJ oscillator registers a neutral reading (~62 for %K), avoiding oversold conditions (<20) but lacking upward impetus. The absence of bullish crossovers in either oscillator suggests limited reversal probability in the immediate term.
Bollinger Bands
Bollinger Bands highlight rising volatility and bearish bias, with the price touching the lower band at $65.22 during the latest session. The bands are expanding after a prolonged contraction period, signaling increased directional momentum. With the current price hovering near the lower band and the 20-day moving average (mid-band) sloping downward, volatility-driven downside risks remain elevated unless a decisive close above the mid-band (~$66.30) occurs.
Volume-Price Relationship
Volume analysis reveals concerning signals for The Kroger. The recent down day (June 18) recorded significantly higher volume (12.25 million shares) compared to the preceding up day (June 16, 6.51 million), confirming bearish conviction. Furthermore, distribution patterns are evident in the higher-volume declines observed during the June 3–11 selloff. This volume divergence weakens the sustainability of any near-term recovery attempts, though capitulation-level volume would bolster reversal prospects.
Relative Strength Index (RSI)
The 14-day RSI reads approximately 39.4, hovering near the neutral zone but edging toward oversold territory (<30). This positioning reflects subdued buying momentum but avoids extreme undervaluation. The RSI’s inability to breach oversold thresholds during recent declines signals underlying weakness. A break below 30 would signal oversold conditions and heighten reversal potential, while failure to hold above 40 may invite accelerated selling.
Fibonacci Retracement
Fibonacci levels derived from the April 22 peak ($73.63) to the June 11 trough ($64.15) highlight critical technical thresholds. The 38.2% retracement at $64.49 aligns closely with the June 12 swing low and serves as major support. The current price ($65.52) lingers between the 23.6% level ($67.99) and this 38.2% floor. A decisive break below $64.49 could trigger momentum toward the 50% retracement ($61.68), while reclaiming $67.99 is critical for bullish reactivation.
Confluence and Divergences
Confluence emerges around the $64.15–$64.50 support zone, where the 38.2% Fibonacci retracement, June 11 low, and Bollinger lower band converge. A breakdown here would validate bearish signals from the MACD, volume distribution, and moving averages. Conversely, divergence appears in the RSI, which lacks oversold confirmation despite recent lows, and the KDJ’s neutral stance amid price weakness—hinting at non-confirmed downside exhaustion. These divergences may temper bearish momentum but require volume-supported reversal candles to gain credibility.
Conclusion
The Kroger’s technical posture remains bearish-biased, with resistance firmly established at $66.00–$66.36 and critical support at $64.15–$64.49. Confluence between Fibonacci, moving averages, and volatility metrics underscores the significance of this support. A breach lower could accelerate declines toward $63.00 (200-day MA), while recovery above $66.36 would necessitate bullish reconfirmation via volume-backed candlestick reversal patterns and oscillator improvements. Given neutral-to-bearish indicator alignment, the path of least resistance appears downward in the near term, though oversold bounce potential may materialize at major supports.