KapStone Paper has taken out an uptrend line drawn off its lows since November and its 50-day moving average, trading down nearly 2% recently in today's session. A close at this level would also remove any support that was being supplied by this month's low.
The better performers on their 50-day average test are H&R Block (HRB), Questar (STR), the natural gas utility, and staffing-and-business services company Robert Half International RHI. The chart shows H&R Block up nearly 3% recently in today's session, forming a bullish two-day reversal candle combination. A bounce off an uptrend line extending from the October low on Friday has continued in today's session and taken out the 50-day moving average.
Questar bounced off its 50-day average last week and the momentum into today's session is taking it above a resistance line drawn off its November and December highs. A confirmed break would establish a double bottom o (RHI)n the chart.
Robert Half is extending last week's bounce off its 50-day average and a close near current levels would establish a bullish two-day reversal candle combination, similar to the one seen in November, and re-establish the uptrend. These stocks need to close above or below their respective levels of support and resistance before they become trading candidates and they require disciplined trailing stops.
At the time of publication, Moreno had no positions in the stocks mentioned.
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