In the past few sessions, The Kroger shares have suffered from a sharp fall and are now coming back to significant support levels.

From a fundamental viewpoint, The Kroger seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.4 times its revenues.

The security follows a downward trend in the short term, under the USD 36.95 resistance area. However, the selling pressure could soon run out of steam thanks to a support level at USD 35.4 and a upward trend-line already tested.

Considering technical and fundamental elements, it seems to be an appropriate timing to open a long trade in The Kroger in order to benefit from the USD 35.4 support area. A first target price will be the USD 36.95 resistance, ie a potential of 4.5%. A stop-loss order will be placed under the mid-term support currently tested. Only a crossing of USD 36.95 would validate a bullish trend in order to aim a higher target price.