H&R Block Appears To Be In A Downtrend

VantagePoint Trading Software is a forecasting tool that uses both end of day data and artificial intelligence to provide traders a forecast of market movement. These forecasts are 1-3 days in advance and help traders improve their timing on making trades and maximizing profit potential. The artificial intelligence software forecasts market movement for stocks, futures, forex, ETFs and cryptocurrencies. 

This entry looks at H&R Block Inc HRB.

The VantagePoint Trading Journal On H&R Block

The following chart shows a one-month chart of H&R Block. Note the big red candle on Dec. 21. 

There was no fundamental news catalyst on that day, but there was a key bearish indicator represented by the two lines on the chart crossing over. The blue line is a predictive moving average that predicts price movement over the next 48 hours. The black line is a simple 10-day moving average. Anytime those two lines cross, as happened on that day, that indicates the trend is changing. 

In this case, the blue line crossed below the black line. This is a bearish indicator. The grey candle in the chart above for Jan 3 is the predicted movement for the day. Even though it shows HRB as moving slightly higher, and the predictive neural index (the red-green bar at the bottom of the chart) is green, as long as those two lines do not cross, the downtrend remains intact. 

Strategy Discussion

As of this writing, H&R Block is down about 1.5 percent on Wednesday. When placing a trade, you always want to identify stop losses to limit potential downside. In this case, the stock has short-term support at $26 and $25.67 from its last earnings day, and resistance at $28.40 from Dec. 19. 

VantagePoint is an editorial partner of Benzinga