Kroger’s share is back upon contact with important technical level that might give impetus to a rebound.

The firm is a five stars company according to our own rating system. That emphasize its attractive valuation, its great business predictability and the earning quality. The P/E ratio for 2016 estimates earning is below the industry average. Furthermore, financial forecast are encouraging as net income is expected to rise about 8%. In addition, the consensus is mainly buyer, and has set an average target price that is displaying a 5.5% upward potential

Graphically, the stock keeps an upward trend on all time scales and is evolving within a bullish channel. The movement was temporarily called into question by the USD 38.6 resistance. Well oriented moving average show the security’s strength and give credit to a further surge in prices.

Consequently, investors may open a long position in the event of a daily closing above the long term resistance. Once initiated the position should be protected by a stop loss at USD 37.5 and a main target price could be USD 40.5.