USB still stuck within tight trading range
U.S. Bancorp (USB) Technical Analysis Report for Mar 25, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USB finished Wednesday at 32.03 gaining $0.83 (2.66%), notably outperforming the S&P 500 (1.15%). Trading up to $1.41 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 31.50, the share confirmed its breakout through the prior session high after trading up to $2.24 above it intraday.
Daily Candlestick Chart (USB as at Mar 25, 2020):
Wednesday's trading range has been $3.75 (11.94%), that's above the last trading month's daily average range of $2.85. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for USB. Prices continued to consolidate within a tight trading range between 28.59 and 33.93 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
After trading down to 29.99 earlier during the day, U. S. Bancorp bounced off the key technical support level at 31.02 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 29.76 in the previous session, the stock found buyers again around the same price level today at 29.99. The last time this happened on March 20th, USB actually lost -11.18% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for U. S. Bancorp. Out of 26 times, USB closed higher 65.38% 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 73.08% with an average market move of 0.99%.