KR Shorts In Play

http://tos.mx/YTx4mL

Now, we see the shorts that have been in play since the high at $42.75 came into view on 12/20/15.  Now here is that MM short that played out to its target:

42.75 drawn DOWN to 28.71.  That range is our PRIMARY RANGE which shows a series of shorts INSIDE OF THAT RANGE.

Each highlighted blue dot shows the ranges that played inside of this primary setup.  We never know how things will go with a chart until we see if a primary reversal holds.

That mid-level blue highlighted area, from 35.73 to 37.39 was where selling setup and we can clearly see a series of lower highs and lower lows FROM THERE.

THIS IS YOUR CLUE TO WAIT OUT price action and not take a long, or to sell cash-secured puts until that $37.39 is broken.

Yes, I know:  that seems like a terrible place to initiate a long, but clearly price had rolled over and was in a short pattern bringing price back down into our LONG MM shown from $5.50 to $42.75 and KR is not a buy until we see a pattern of long MM's play out FROM HERE ON.

LOOK at that GAP-DOWN.  NOW, let's be clear that KR has been in a short since that series of lower highs and lower lows after 12/19/16....on our daily chart.

INSIDE Of the PRIMARY LONG (5.5 to 42.75) and our SHORT (42.75 drawn down to 28.71), there have been a series of short MM's all along.

http://tos.mx/Jjit69   >>> here's the first one, 36.44 drawn down to 32.69.

NOTES:

1.  KR IS VERY TECHNICALLY traded by robots.  LOOK closely as to how close price came to the REGION between the 50% line, 34.57 and the 35.01, which had it broken that 61.8% line, then the buyers would have had to prevail to recover price and move price past the next zero lines of NEW MM LONGS...this did NOT happen.

2.  LOOK at how this very MM, again, 36.44 drawn down to 32.69 BLEW through its -23.6% target (31.80) and ALSO blew through, (punched through, ran through, RIPPED LOWER) past its -61.8% line (the second lower dashed green line) and moved WELL LOWER into a new primary level that we are watching.

NOW, again, we have a long from lows, 5.5 to 42.75 that has a break level (at 19.73) and this is how the chart now looks:

http://tos.mx/odobR7

To review:

1.  We have a long that MUST HOLD or get out of KR or DO NOT BUY.

2.  We have a series of shorts and I will post a chart once price recovers or IF price recovers.

For KR to become a long, that 19.73 must NEVER be penetrated.  AND, if price moves higher FROM this minor range (above $19.73 and then keeps moving higher, above say $25 and better) then we can consider a long.

BUT, as subsequent charts will show us, we need to BREAK the range above us, from $42.75 drawn all the day down to that low, and the completed moves above it:

http://tos.mx/SDAykN

There are three setups in this chart.  We just DO NOT Know how price will act from there, but if that break line noted above holds (19.73) we will have to AT LEAST break the very next MM short, from 32.90 drawn down to 20.46 and the key levels are 26.68 and 28.15.

For long players, here is what you should do:

1.  WATCH $19.73...will it be tested or broken. IF BROKEN, get out.

2. If price recovers to 28.16, then begin to draw up ranges FROM THERE or slightly below it as KR recovers and longs pour in.

3.  IF PRICE moves up to 26.68 or slightly higher than that but does NOT break 28.15....then, sellers may pour back in and get out THEN.

DJ