USB closes within prior day's range after lackluster session
U.S. Bancorp (USB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
USB finished the week 0.9% higher at 55.11 after edging lower $0.07 (-0.13%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (USB as at Feb 14, 2020):
Friday's trading range has been $0.49 (0.89%), that's far below the last trading month's daily average range of $0.73. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for USB.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on January 14th, USB lost -2.86% on the following trading day.
After having been unable to move above 55.37 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 55.33.
Though U. S. Bancorp is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 55.69 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 54.48 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for U. S. Bancorp. Out of 233 times, USB closed higher 54.51% 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 57.94% with an average market move of 0.70%.