Don't Ignore This Chart!

H&R Block Tests its Breakout Zone


The chart for H&R Block (HRB) shows two corrective patterns, one confirmed and one working. First, HRB retraced around 61.8% of the February-August advance and formed A big wedge. The wedge pattern and the retracement amount are typical for corrections after a sharp advance. HRB broke out with a surge above 27 in early December and this indicates that the bigger trend is up. 

A smaller wedge formed over the last few weeks as the stock again retraced around 61.8% of the prior advance. Also notice that broken resistance turns into support in the 26 area. The stock firmed the last few weeks and I am watching for a breakout at 27.5. Such a move would reverse the recent slide and signal a continuation of the bigger wedge breakout. 

The indicator window shows MACD flattening around the zero line. MACD is at its moment-of-truth and an upturn from here would be bullish. 

Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus