The Kroger share continues its bullish rally to test new highs.

The fundamental qualities of the group are clearly attractive as evidenced by the upward revisions of earnings per share. The valuation remains low with an attractive P/E ratio at 12.4x for 2014 and 11.3x for 2015.

From a technical viewpoint, prices are well oriented in a bullish trend on different time scales. This positive trend is expected to go toward USD 35.52. The consolidation phase is corresponding to an healthy configuration after a one-year bullish movement.

Therefore, investors could take a long position in The Kroger, on breakout of the USD 35.5 mid-term resistance with an objective at USD 38. A stop loss should be placed under USD 34.7.