August 12 Chart of the Day - H&R Block

Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.

H&R Block (HRB) has been on a sharp downward slide, and while the instinct to “buy the dip” can be tempting, the old market adage still applies... don’t be too quick to catch a falling knife.

Price action will ultimately tell us if the current drop is creating a high-value opportunity or if more downside is yet to come and with earnings scheduled after the bell today we'll just take a wait and see approach.

Until then, disciplined patience remains the smarter trade.

We'll review the chart from a price action perspective to identify potential levels of interest in both directions.

Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.

When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame. 

As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.

Since May 2023, we've showcased over 575+ Charts of the Day and provide a Free Quick Start Guide to traders with ambitious income goals for our patent-pending NeuroTrading Method™.

Monthly Chart 

On the monthly chart we can see that price quickly retreated after establishing new $68.45 all time highs last year.  

Currently, price may have its sights set on the $50 or below area yet again, or possibly even lower, if it breaks through a previous support shelf. 

This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.

Weekly Chart

On the weekly chart, we can see with much more clarity the overall selling pressure during the past year.

Technically speaking, it wouldn't be surprising to see price catch a relief bounce up to the $50 area before resuming its downward movement.

Notably, there is a potential demand zone roughly between $42 - $44.  A demand zone is another one of the five price action tools we teach.

It's a price area on a chart where previously there was a high demand for the underlying asset based on historical price action in and around the same area where buyers could be prepared to purchase at different levels within the zone.  A demand zone is present within the light gray rectangle and has a high buying potential.

It goes without saying though, the only guarantee in the markets is that price cycles.  It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.

Only time will tell for sure what price will do next...

We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.

With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.

So what's next? 

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