As I continue to perform a screen using my MA as resistance rule, I pick up a NYSE stock today. That’s Kroger. It is trading very near to the 50d MA resistance now and we can also see that it was resisted by 50d MA earlier too and took a deep dive after that.
Let’s take a look at the chart!
Kroger – Rewarding Stock Picks
Looking at this chart, the reward to risk ratio looks rewarding to me. I will be shorting this stock with a stop loss at the recent pick at around 27.37. It looks to form a lower low and that’s a key characteristic of a down trending counter. That justify my position to short.
The market has finally turned green after few days of massacre. The market sentiment is still week at the moment and I do not see a high high formation on the stock indices to signal a reversal. So, that’s another key reason to justify my short position.
Trading is not risk free, it is important to have a stop loss to protect our capital always. My stop loss of this counter will be 27.37.
Kroger - My Stock Picks at MA Resistance
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
Welcome back to InvestMoneyLab, you can now join our Facebook Friend of InvestMoneyLab to get a FREE Book by T. Harv Eker Now! You can also receive latest profitable trading system and stock picks for free in future. Thanks for visiting!
