USB finds buyers around 35.80 for the third day in a row
U.S. Bancorp (USB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, USB ended the month 3.54% higher at 36.82 after gaining $0.47 (1.29%) today, slightly underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (USB as at Jun 30, 2020):
Tuesday's trading range has been $1.31 (3.65%), that's below the last trading month's daily average range of $1.63. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for USB. Prices continued to consolidate within a tight trading range between 35.80 and 38.17 where it has been caught now for the whole last trading week.
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 June 25th, USB actually lost -5.23% on the following trading day. In spite of a weak opening U. S. Bancorp managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 35.66 (S1). Prices are trading close to the key technical resistance level at 37.89 (R1). The market found buyers again today around 35.80 for the third trading day in a row after having found demand at 35.87 in the previous session and at 35.95 two days ago.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 38.17 where further buy stops might get triggered. As prices are trading close to June's low at 35.61, downside momentum could speed up should the stock mark new lows for the month.
Among the eight 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 106 times, USB closed higher 57.55% 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 59.43% with an average market move of 0.52%.