Looking at the technical picture of the H&R Block Inc. stock (NYSE: HRB) on our daily chart, we can see that last week the share price managed to jump and stay above a medium-term downside resistance line taken from the high of September 2nd. That said, lately, the stock has been struggling to overcome the highest point of January, at 24.95. Although the near-term outlook seems to be more positive than negative, we would prefer to wait for a break above that January high first, before getting comfortable with further advances.
If, eventually HRB pops and stays above 24.95 barrier, this will confirm a forthcoming higher high, potentially attracting more buyers. The stock might travel to the area between the 25.53 and 25.81 levels, marked by the highest point of November and October respectively. Initially, the share price may get halted around there, but if the buyers stay strong, they could overcome that area and aim for the 26.51 zone, which is the highest point of September.
The RSI is above 50 and the MACD is above zero and the signal line. However, both indicators are currently flat, supporting the idea of waiting for a breakout first and then aiming further north. Overall, the two oscillators are showing positive price momentum, which comes inline with the general idea of the short-term directional move mentioned above.
Alternatively, if the stock falls back below the aforementioned downside line and also below the 24.30 hurdle, marked by the low of February 11th, that may temporarily spook the buyers from the field. HRB could drift to the 23.51 obstacle, a break of which might set the stage for a further move south. That’s when we will aim for the 22.54 level, marked by the inside swing high of January 27th.
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