USB closes above its opening price after recovering from early selling pressure
U.S. Bancorp (USB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
USB ended the week 7.33% higher at 32.93 after edging higher $0.01 (0.03%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.69 lower after the open, U. S. Bancorp managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (USB as at May 22, 2020):
Friday's trading range has been $0.80 (2.43%), that's below the last trading month's daily average range of $1.37. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for USB. Prices continued to consolidate within a tight trading range between 31.81 and 33.35 where it has been caught now for the whole last trading week.
Four candlestick patterns are matching today's price action, the Dragonfly Doji which is known as bullish pattern, two bearish patterns, the Hanging Man and the Northern Doji and one neutral pattern, the Doji. The last time a Doji showed up on February 24th, USB lost -4.45% on the following trading day.
Prices are trading close to the key technical resistance level at 33.17 (R1).
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 33.35 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 31.81 where further sell stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for U. S. Bancorp. Out of 679 times, USB closed higher 51.10% 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 58.62% with an average market move of 0.36%.