U.S. Bancorp operates as a bank holding company. It offers financial services, including lending and depository services, cash management, foreign exchange and trust and investment management. The firm also offers mortgage, refinance, auto, boat & RV loans, credit lines, credit card services, merchant, bank, checking & savings accounts, debit cards, online & mobile banking, ATM processing, mortgage banking, insurance, brokerage and leasing services.
Take a look at the 1-year chart Bancorp (NYSE: USB) below with my added notations:
USB had formed a key level of resistance at the $39 level (red) during the past two months. However, the stock broke through that resistance last week. If USB comes back down to that $39 level, which should now act as support, a bounce could be expected. Regardless, higher prices, overall, should be expected.
The Tale of the Tape: USB broke through its key level of resistance at $39. A long trade could be entered on a pull back down to that level. However, a break back below $39 could negate the forecast for a higher move and would be an opportunity to get short the stock.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
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USB shares were trading at $43.34 per share on Monday morning, up $0.97 (+2.29%). Year-to-date, USB has declined -26.03%, versus a 0.27% rise in the benchmark S&P 500 index during the same period.
About the Author: christian
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...
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