Since the start of November, leading regional
bank stock, U.S. Bancorp (NYSE:USB), has been pulling back on the
charts. On November 2, 2017, USB stock traded as high as $55.08 a
share, today the stock is trading at $52.02 a share. The one
negative for the stock is that it is trading below its 50 and
200-day moving averages. This chart formation tells us that the
stock is vulnerable to lower prices in the coming
weeks.
Traders must now watch the $49.00 area as the next
major chart support level. This level was defended in September
2017 by the institutional money and it should be defended again
when it is retested. It is always important for traders to know
where they are wrong, so I would place a stop-loss below the $47.00
level using a weekly chart close. The upside targets for USB stock
would be $55.00 as a first target and ultimately $60.00 a share as
the final target.
Nicholas Santiago
InTheMoneyStocks