U.S. Bancorp (NYSE:USB) gained 1.15% in yesterday’s session, going up from its prior closing price of $53.15 to $53.76. The price has fallen in 6 of the last 10 days, but is still up by 0.04% during the last two weeks. Trading activity decreased by -0.76 million shares, and in total, 5.70 M shares exchanged hands for about $306.29 million. It should be noted that increasing price and decreasing volume show lack of interest and this is a warning that something has fundamentally changed.
Inside USB’s Recent Trend
U.S. Bancorp (USB) is the upper part of a horizontal trend and normally this would pose a good selling opportunity, but a break-up through the top trend line at $54.21 will give a strong buy signal and a trend shift may be expected. Given the current horizontal trend you can expect US Bancorp with 90% probability for the price to range between $50.61 and $54.82 in this timeframe. Investors sometime notices large volume spikes after a breaking of the horizontal base, and stocks rarely experience a roller coaster ride from the bottom of a trend. Stocks jumping at a middle end of a horizontal base are therefore followed in search of a potential runner.
U.S. Bancorp Technical Signals
USB has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $53.58 and $52.26. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Wednesday October 04, 2017, which calls for additional surge until the stock forms a new pivot point high. There was a decrease in volume but the price rose. This is usually not interpreted as a good sign as traders widely believe falling volume should see declining stock. Investors should be watching the price action like a hawk in the coming sessions.
U.S. Bancorp (NYSE:USB) Support And Resistance Levels
U.S. Bancorp (USB) recorded volume accumulation so there will probably be a surplus of buyers at $52.79. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $54.15.
Accumulated volume is going to prevent the price from rising further at $54.15 and this action will lead the price to take a temporary pause or stay muted for a few days.
U.S. Bancorp (USB) Risk Assessment
The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $1.05 (1.98%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 1.32%.
The stock is in overbought condition based on RSI(14) readings and sits at the top end of the trend. In general, this will advocate a great exit point for short term investors, but in some cases it takes more time for the trend to shift while the stock is being overbought and the Relative Strength Index keeps going higher. Regardless, the high RSI together with the trendposition increases the risk and higher daily movements (volatility) should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.