Don't Ignore This Chart!

US Bancorp Makes a Break for It


US Bancorp lagged the broader market the first half of the year, but managed to firm from March to June and lead with a breakout in July.

The chart shows USB falling from 57 to 49 with a sharp decline from late January to late March. The stock managed to firm after this decline and traded in the 48 to 52 range for over three months.

Signs of buying pressure began to appear with the island reversal at the end of May. This reversal occurred with a surge in upside volume and upside volume continued to outpace downside volume in June and July.

With a sharp advance the last three days, the stock broke above resistance and this is a bullish event. The breakout zone in the 51.5-52 area turns into the first support zone to watch. There is sometimes a throwback to prior resistance and this can offer a second chance to partake in the breakout.

Plan Your Trade and Trade Your Plan.

- Arthur Hill, CMT

Senior Technical Analyst,

Book: Define the Trend and Trade the Trend
Twitter: Follow @ArthurHill

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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