HRB runs into sellers again around 22.53
H&R Block Inc. (HRB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HRB finished the week 0.31% higher at 22.38 after losing $0.10 (-0.44%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.14 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 6th, HRB lost -3.92% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HRB as at Feb 14, 2020):
Friday's trading range has been $0.27 (1.21%), that's far below the last trading month's daily average range of $0.55. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HRB. Prices continued to consolidate within a tight trading range between 22.01 and 22.53 where it has been caught now for the last three trading days.
One neutral candlestick pattern matches today's price action, the Doji.
After having been unable to move above 22.51 in the prior session, H&R Block ran into sellers again around the same price level today, missing to move higher than 22.53.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 22.01 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for H&R Block. Out of 132 times, HRB closed higher 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.30% with an average market move of 0.41%.