Kroger Shares Slide 2.99% To $69.32 Amid Bearish Technical Signals

The Kroger (KR) shares declined 2.99% in the most recent session, closing at $69.32, marking the third consecutive daily loss and totaling a 4.88% drawdown over this period. This analysis evaluates key technical indicators to assess the stock’s near-term trajectory.
Candlestick Theory
Recent price action reveals a bearish "Three Black Crows" pattern formed over the last three sessions (July 24–28), characterized by progressively lower closes and waning intraday recovery attempts. The latest candle closed near its low ($69.11), reinforcing selling pressure. Key support converges at $68.00–$68.50, anchored to the June 20 low ($67.50) and July 14 swing point. Resistance is firm near $71.40–$71.80, aligning with the July 25–28 highs. A sustained break below $68.00 may accelerate downside momentum.
Moving Average Theory
The 50-day moving average (MA) has flattened near $70.80, while the 100-day and 200-day MAs maintain upward slopes at $67.20 and $62.60, respectively. The current price sits below the 50-day MA for the first time since late June, signaling short-term trend deterioration. The 100-day MA offers proximate support, but a death cross (50-day below 100-day) is not yet imminent. Medium-term bullish structure persists given the ascending long-term MAs, though short-term weakness dominates.
MACD & KDJ Indicators
MACD (12-26-9) exhibits a bearish crossover, with both the MACD line and signal line in negative territory and diverging. This suggests strengthening downward momentum. The KDJ oscillator (14-period) shows K (22.5) and D (30.1) plunging below 30, entering oversold territory but lacking bullish reversal signals. While oversold conditions may invite tactical rebounds, the absence of K/D upward crosses or positive MACD convergence implies bearish continuity.
Bollinger Bands
Price breached the lower Bollinger Band ($70.20) on July 28, an occurrence typically preceding either swift reversals or volatility expansions. Band width expanded 15% over the prior week, confirming elevated volatility. Closing below the lower band often signals an oversold bounce, but failure to reclaim the 20-day SMA ($70.50) would validate bearish momentum. Sustained trading below $70.50 may catalyze further band expansion.
Volume-Price Relationship
Volume surged to 6.99 million shares on July 28 (+106% vs. 30-day average), validating downside conviction. This distribution phase followed above-average volume during the July 14–23 rally, indicating informed selling near highs. The volume-weighted average price (VWAP) since July 14 sits at $71.00, now acting as resistance. Declines on rising volume underscore bearish dominance.
Relative Strength Index (RSI)
The 14-day RSI (28.3) entered oversold territory (<30), the lowest reading since March 2025. Historically, RSI dips below 30 have preceded short-term bounces (e.g., April 10 and June 20). However, RSI can remain oversold during strong downtrends, reducing its reliability as a standalone reversal signal. Current levels warrant caution but align with other oversold readings.
Fibonacci Retracement
Applying Fibonacci to the June 20 low ($67.50) and July 23 high ($73.03) places the 61.8% retracement at $69.61 and the 78.6% level at $68.35. The stock closed below the 61.8% support, opening a path toward $68.35–$68.00. Confluence exists near $67.50–$68.00, combining the June low, 78.6% Fibonacci, and 100-day MA. A rebound would need to reclaim $70.26 (50% retracement) to neutralize immediate bearishness.
Confluence and Divergence
Confluence of bearish signals is evident: MACD/KDJ momentum deterioration, high-volume breakdown below $70.50, and violation of Fibonacci support. Oversold RSI and Bollinger Band penetration offer counterpoints but lack confirming reversal patterns. Divergence between the stable long-term MAs (bullish) and weakening short-term indicators (bearish) creates ambiguity, though near-term momentum favors sellers. A decisive close below $68.00 would reinforce bearish continuity, whereas a rebound above $70.50 could ease pressure.