The U.S. Bancorp (USB) stock price shows a cup and handle pattern and suggests a follow-up buying action to be watched out for toward the swings of $50 for the upcoming sessions. Moreover, the price action shows that buyers are gaining traction, are now looking for a breakout to escape the immediate hurdle of $40, and are willing to achieve a bull rally soon. Furthermore, USB stock faces the 20-day EMA as a barrier to raising gains. However, the bulls have maintained their gains and did not initiate a fall below $35.
The USB stock price shows neutrality on the charts and may see a rebound toward $50 in the following sessions. Moreover, the technical and chart structure shows a positive outlook and suggests a significant upside if it escapes $40 in the upcoming sessions. The upper trajectory of $50 is the primary target that bulls want to retest, whereas the lower trajectory is near $30, where USB stock is currently trading, and willing to escape $40.
At press time, the USB stock price trades at $36.20 with an intraday gain of 0.25%, showing neutrality on the charts. Moreover, the trading volume increased by 0.98% to 7.33 Million, and the market cap is $55.493 Billion. However, Analysts maintained a neutral rating with a yearly target price of $43.66, suggesting a significant upside for the following sessions.
U.S. Bancorp operates as a bank holding company that 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, and RV loans, credit lines, credit card services, merchant, bank, checking and savings accounts, debit cards, online and mobile banking, ATM processing, mortgage banking, insurance, brokerage, and leasing services.
USB Stock Shows Cup and Handle Pattern On Daily Charts
On the daily charts, USB stock looks like an ideal candidate for follow-up buying and may retest the cluster of $40 soon. Moreover, the technicals suggest that the stock is preparing its muscles and preparing for an upcoming rally toward $50.
The RSI curve stayed near neutrality, showing a bearish divergence and forming a positive crossover, indicating a volatile chart structure.
The MACD indicator showed a bearish crossover, and the red bars have ended, suggesting buyers’ accumulation on the charts.
Summary
The USB stock price is trading near the 20-day EMA, showing buyers’ accumulation on the charts. Moreover, the price action suggests that USB stock is preparing for a bull rally toward $50 in the upcoming sessions. However, the stock is waiting to escape the primary cluster of $40, which surpasses getting entry, to reach $50 soon.
Technical Levels
Support Levels: $35 and $30
Resistance Levels: $40 and $50
