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H&R Block, Inc (HRB) - Bears Take Over After False Bullish Breakout

H&R Block $HRB did a little shake today. Well, during the 6/12 session, there was anticipation that HRB was going to beat Q1 earnings and revenue expectations, and these expectations were correct.

However, on another front, we have Trump claiming that the new tax codes will be bad for HRB. In fact, Trump was once quoted "I want to put H&R Block out of business". 

CNBC reports: H&R Block shares plunged nearly 20 percent in extended trading, despite the tax preparation company's beat on first quarter earnings and revenue. H&R Block reported $5.43 EPS on revenue of $2.39 billion. Analysts were expecting earnings of $5.27 per share on $2.34 billion in revenue. The company also approved a 4 percent quarterly dividend increase to 25 cents per share. (CNBC.com)

HRB Weekly Chart

(click to enlarge)

False Bullish Breakout:
- On the weekly chat, we can see that price has been bullish since last week, and is cracking a projected triangle resistance as well as a recent consolidation resistance. 
- With the RSI holding above 40, it looks like HRB has maintained the bullish momentum of 2017 and could be getting into a bullish continuation mode in the second half of 2018. 
- However, we are seeing red in after-market trading, and price is likely going to open during the Wednesday 6/13 session either below or right around the 2018 low around $24. This is also a consolidation range support area. 
- If price closes below $23.50 this week, we are likely going to see a slide to $20. 
- The false bullish breakout is likely going to translate to a bearish breakout. 

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