USB pushes through key technical resistance level


U.S. Bancorp (USB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

USB pushes through key technical resistance level
USB dominated by bulls lifting the market higher throughout the day
USB closes higher for the 3rd day in a row
USB pushes through Wednesday's high

Overview

Moving higher for the 3rd day in a row, USB finished Thursday at 36.18 gaining $4.15 (12.96%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 33.74, the share confirmed its breakout through the previous session high after trading up to $2.98 above it intraday.

Daily Candlestick Chart (USB as at Mar 26, 2020):

Daily technical analysis candlestick chart for U.S. Bancorp (USB) as at Mar 26, 2020

Thursday's trading range has been $4.50 (13.9%), that's far above the last trading month's daily average range of $2.97. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for USB.

One bullish candlestick pattern matches today's price action, the White Candle.

Buyers managed to take out the key technical resistance level at 35.88 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, USB gained 2.66% on the following trading day.

Though the stock 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 accelerate should prices move above the nearby swing high at 37.15 where further buy stops could get triggered.

Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for U. S. Bancorp. Out of 224 times, USB closed higher 52.23% 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 57.59% with an average market move of 0.36%.


Market Conditions for USB as at Mar 26, 2020

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