We can see the cup-with-handle pattern developing on the daily chart, consisting of a six-month rounded bottoming pattern followed by a brief pullback in the month of October.
The key to a cup with handle pattern is the "rim" of the cup, which is essentially a trendline connecting the highs during the price pattern.
Other indicators on the chart seem to suggest that an impending breakout is likely, especially the RSI which has been in a bullish range since July of this year.
Similar to the daily chart, we can see the weekly RSI has been in a bullish range for the last five years.
This continued bullish momentum range suggests a bullish secular trend, reinforcing the upside potential represented on the daily chart.
Persons:
I'm, I've, David Keller
Organizations:
Kroger Co, Kroger, RSI, CMT, CNBC, NBC UNIVERSAL