Kroger Co. - KR - close 22.75 change +0.21 stop 21.50

Target(s): 23.15, 23.60
Key Support/Resistance Areas: 23.75, 23.25, 22.80, 22.30, 20-day SMA
Current Gain/Loss: Unopened
Time Frame: 2 to 4 weeks
New Positions: Yes, see trigger

Company Description:
The Kroger Co. is a retailer in the United States. The Company also manufactures and processes food it sells in its supermarkets. As of January 30, 2010, the Company operated, either directly or through its subsidiaries, 2,468 supermarkets and multi-department stores, 893 of which had fuel centers. (source: company press release or website)

Why We Like It:
KR has broken out of of an ascending triangle with prior resistance at $22.30 which should now act as support. We are looking for KR to pullback to $22.30 which is the trigger I suggest readers use to launch bullish positions. The rising 20-day SMA should act as support on dips. Our intitial stop is $21.50 and we are targeting a +4% to +6% move higher.

Suggested Position: Long KR stock at $22.30

Annotated chart:

Entry on November XX
Earnings Date 12/8/2010 (unconfirmed)
Average Daily Volume: 6 million
Listed on November 3, 2010