USB unable to break through key resistance level
U.S. Bancorp (USB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
USB finished Wednesday at 38.16 gaining $0.84 (2.25%), strongly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 38.08, the stock confirmed its breakout through the previous session high after trading up to $0.64 above it intraday.
Daily Candlestick Chart (USB as at Sep 16, 2020):
Wednesday's trading range has been $1.55 (4.15%), that's far above the last trading month's daily average range of $1.06. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for USB.
Three candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and two bearish patterns, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern. The last time a Bearish Hikkake Pattern showed up on August 3rd, USB lost -1.55% on the following trading day.
Unable to break through the key technical resistance level at 38.47 (R1), the market closed below it after spiking up to 38.72 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 37.11 in the prior session, the share found buyers again around the same price level today at 37.17.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying could move prices higher should the market test August's nearby high at 39.35.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for U. S. Bancorp. Out of 115 times, USB closed higher 50.43% 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 60.87% with an average market move of 0.51%.