USB runs into sellers again around 50.38
U.S. Bancorp (USB) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
USB ended Tuesday at 50.28 gaining $0.39 (0.78%), outperforming the S&P 500 (0.05%) ahead of Wednesday's earnings report. Today's close at 50.28 marks the highest recorded closing price since March 20th. Trading up to $0.44 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (USB as at Apr 16, 2019):
USB is set to report earnings before tomorrow's market open. For the upcoming report, analysts expect the company to have earned $1.0 per share. The company's last earnings report was released on Jan. 16, 2019, when U. S. Bancorp reported earnings of $1.07 per share hitting market expectations.
Tuesday's trading range has been $1.00 (2.01%), that's above the last trading month's daily average range of $0.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USB.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on January 2nd, USB actually lost -1.40% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
U. S. Bancorp managed to close back above the 100-day moving average at 50.04. After having been unable to move above 50.29 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 50.38.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 50.76 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for U. S. Bancorp. Out of 103 times, USB closed higher 55.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.34% with an average market move of 0.24%.