HRB closes above its opening price after recovering from early selling pressure
H&R Block Inc. (HRB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HRB ended the month -16.0% lower at 14.28 after edging higher $0.07 (0.49%) today, strongly underperforming the S&P 500 (1.54%). Trading up to $0.11 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 18th, HRB actually lost -3.91% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HRB as at Jun 30, 2020):
Tuesday's trading range has been $0.29 (2.05%), that's far below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being slightly 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 13.46 and 14.38 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 14.53 (R1). After having been unable to move above 14.38 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 14.33.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 14.38 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 13.46 where further sell stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for H&R Block. Out of 617 times, HRB closed higher 52.19% 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 56.24% with an average market move of 0.30%.