USB closes lower for the 2nd day in a row
U.S. Bancorp (USB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, USB finished the month 0.05% higher at 36.84 after edging lower $0.07 (-0.19%) today, underperforming the S&P 500 (0.77%). Trading up to $0.57 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 failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (USB as at Jul 31, 2020):
Friday's trading range has been $0.79 (2.16%), that's below the last trading month's daily average range of $1.17. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USB.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The share was bought again around 36.08 after having seen lows at 36.02, 36.01 and 35.92 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on July 2nd, USB gained 2.62% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 37.83 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 35.59 where further sell stops might get triggered. As prices are trading close to July's high at 38.47, upside momentum could speed up should the market mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for U. S. Bancorp. Out of 499 times, USB closed higher 52.10% 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 59.12% with an average market move of 0.56%.