HRB finds support at 20-day moving average
H&R Block Inc. (HRB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HRB finished the month 1.54% higher at 14.50 after losing $0.35 (-2.36%) today on high volume, notably underperforming the S&P 500 (0.77%). Closing below Thursday's low at 14.56, H&R Block confirmed its breakout through the previous session low after trading up to $0.17 below it intraday.
Daily Candlestick Chart (HRB as at Jul 31, 2020):
Friday's trading range has been $0.58 (3.92%), that's slightly above the last trading month's daily average range of $0.56. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HRB.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 20th, HRB actually gained 1.63% on the following trading day.
After trading as low as 14.39 during the day, the share found support at the 20-day moving average at 14.41. Prices broke below the key technical support level at 14.63 (now R1), which is likely to act as resistance going forward. After having been unable to move above 14.96 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 14.97.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 14.20 where further sell stops might get activated. As prices are trading close to July's high at 15.35, upside momentum could speed up should the market mark new highs for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for H&R Block. Out of 58 times, HRB closed higher 58.62% 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 53.45% with an average market move of 0.14%.