A squeeze is one of my favorite technical setups. It happens when Bollinger Bands contract inside Keltner Channels, signaling that volatility is compressing. Think of it like a spring coiling tighter and tighter—when the squeeze "fires," it releases all that built-up energy, and the stock often makes a big, directional move. What has me particularly excited about KR is that it's not just showing one squeeze. We're seeing squeezes across multiple timeframes, including the daily, 30-minute, 15-minute, and 10-minute charts. When you see this kind of multi-timeframe setup, it's a clear sign that the stock is building energy. And when that energy is finally released, the move can be significant. Combine that with KR's positioning near its 52-week highs, and you've got a textbook setup for a potential breakout. Stacked EMAs: A Bullish Signal You Can Trust Let's talk about those stacked EMAs because they're one of the most reliable indicators of a strong trend. On both the daily and weekly charts, KR's shorter EMAs (like the 8-day and 21-day EMAs) are stacked cleanly above the longer EMAs (such as the 34-day and 55-day EMAs). Why does this matter? Stacked EMAs are a hallmark of a healthy, bullish trend. They act as dynamic support levels, creating a safety net for the stock during pullbacks. This kind of alignment not only confirms that the trend is intact but also suggests that buyers are in control. For KR, this bullish EMA structure is a strong signal that the stock's uptrend has momentum and staying power. When combined with its squeezes, it paints a very compelling technical picture. Relative Strength: KR Is Outperforming the Market In a market where many stocks are struggling to gain traction, KR stands out as a clear leader. The stock has outperformed the broader market this year, gaining more than 11% year-to-date. Relative strength is one of the most important factors I look for in a trade. It's like a spotlight, highlighting where the strongest names are hiding. When a stock can outperform during times of market uncertainty, it tells you that institutional investors are piling in. Big money flows are a sign of confidence, and KR is benefiting from that right now. Why KR Thrives in Market Chaos Let me zoom out for a second and talk about why KR is so well-positioned fundamentally. In times of market uncertainty—like what we're seeing right now with the tariff drama—consumer staples stocks tend to perform well. Why? Because people always need groceries. No matter what happens with tariffs or the broader economy, KR's business is steady and reliable. Plus, Kroger's business model isn't heavily exposed to global supply chains, which means it's less vulnerable to tariff risks. This makes it a defensive play in a volatile market, and defensive plays tend to attract a lot of attention when uncertainty is high. Options Are Cheap—Here's What I'm Looking At One of the most exciting things about KR is that its options are relatively cheap right now. That means you can go further out in time without paying a huge premium, which gives you more flexibility to let the trade develop. If I were to play this, I'd be looking at call options expiring in May or June. That gives you plenty of time to ride this setup if the breakout happens. And with the squeezes and stacked EMAs lining up, it's a setup that looks ripe for a big move. Your Action Plan So, here's where I'm at with KR: I don't have a position yet, but this is absolutely at the top of my watchlist. With squeezes across multiple timeframes, stacked EMAs, and strong relative strength, KR has all the ingredients for an explosive breakout. In a market like this, I'm not interested in weak names hoping for a bounce. I'm focused on strength, and KR is showing all the signs of a winner. I'll continue to keep an eye on this one, and if the setup plays out the way I'm expecting, I'll look to take advantage. And believe it or not, earnings season is right around the corner, which always brings a wave of new opportunities. If you're looking for more high-probability setups like this one—but with even faster results—definitely check out my Opening Bell Aftershocks strategy. It's all about catching explosive moves just minutes after the market opens. In fact, I've seen moves of 100–300% in just a few minutes using this approach. Click here to learn how to start trading Opening Bell Aftershocks today. |
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