Will USB Stock Sustain CMP?

Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.

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U.S. Bancorp’s earnings have been falling at an average annual rate of -1.8%, as shown by the data from SimplyWall St., a site that offers financial data and analysis. The Banking sector, on the other hand, is seeing an increase in its earnings by 14.9% annually. US Bancorp’s revenues have risen at an average rate of 3.1% per year. Its return on equity is 10.9%, and its net margins are 22.6%.

U.S. Bancorp has $680.8 Billion in total assets and $53.5 Billion in total equity, as shown by the data from SimplyWall St. The bank has $521.6 Billion in total deposits and $372.3 Billion in total loans. Its Net Interest Margin is 2.7%. It has enough provision for bad loans, which are only 0.3% of its total loans. It has $70.6 Billion in cash and short-term investments.

The market capitalization of ON stock is $58.895 Billion and the total revenue is $27.40 Billion. Moreover, the stock’s basic EPS is $3.65 and the price-to-earnings ratio is 10.86. Moreover, the average volume is 55.297K and the current volume is 260.314K, the current volume is above average volume.

Moreover, the stock has done well this month, increasing by 14.14 but plummeted by 16.02% in the last six months. U.S. Bancorp (NYSE: USB) stock has a negative year-to-date return of 13.08% and a 1-year return of 18.20%.

Technical Analysis of US Bancorp Price in 1-D Time Frame

The price action shows that US Bancorp (NYSE: USB) stock bounced back from a major demand zone at around $28.60 and rose sharply by 37% in nearly two months, making higher highs and lows.

Moreover, in the one-day time frame, in the USB stock chart, the stock formed a bullish pattern known as inverted head and shoulder. USB price also broke out from the $33.36 support level. If the USB stock price maintains the current level, it could go up and reach the first and second targets at $45.72 and $49.92 respectively. 

However, if the USB stock price faces rejection and falls, it might reach the nearest support levels at $31.76 and $27.28.

At the time of publishing, US Bancorp is trading above the 20, 50, 100, and 200-day EMAs (exponential moving average), which are supporting the US Bancorp stock price trend. Hence, US Bancorp price is expected to move upwards giving bullish signals over the daily time frame chart.

The current value of RSI is 72.20 points. The 14 SMA is above the median line at 65.46 points which indicates that the price is in an extremely overbought zone and a fall is anticipated soon.

The MACD line at 1.51 and signal line at 1.03 are above the zero line and a bullish crossover was observed in the MACD oscillator which signals more bullishness for the USB stock price.

After analysing all these indicators, it is presumed that to sustain the above, the USB price must spend time at the nearest support otherwise a fall might be imminent for USB stock in the near future.

Summary

As per the US Bancorp price chart, it has risen by 37% in two months and formed a bullish pattern on the one-day chart. The USB stock price has broken out from a support level and could reach higher targets if it stays above the current level. However, the USB stock is in an overbought zone and could fall if it faces rejection. Therefore, US Bancorp (NYSE: USB) stock needs to consolidate at a support level to sustain the uptrend.

Technical Levels

• The nearest support levels: $31.76 and $27.28.
• The nearest resistance levels: $45.72 and $49.92.

Disclaimer

In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.