Another one of those "meh" days from the market. The biggest problem for the market of late hasn't really been the threat of downside, as it is just getting simple follow through on the prior day's price action. So a lot of your breakouts in individual stocks are not being sustained and as a result head-faking a lot of traders.
Here you have H&R Block (NYSE:HRB) that has been in a multi-month ascending triangle pattern that is thereby creating a very solid base after having sold off back in March. If this breakout can hold today and into the close there is a very strong possibility that this stock is going to be ready to make a strong push higher and possibly fill that gap from March of this year.
On the risk side of the trade you have the 5, 10 and 20-day moving averages converging together and offering decent support right at the rising trend line that began back in May when the lows were putting in.
So with price breaking out above the $24.40 price level, HRB is in a good position, if this market holds up, to provide traders with plenty of upside and limited downside.
Here's the trade setup:
