Is U.S. Bancorp Breaking Out?

Published on Friday, 12 March 2010 17:36 Written by Christopher Lynn

New York, March 12th (TradersHuddle.com) - Shares of U.S. Bancorp (NYSE:USB) closed the trading session at $25.67 just above calculated resistance at $25.31 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

U.S. Bancorp (NYSE:USB) is a diversified financial services company that provides lending and depository services, and cash management. The Company also provides credit card services, mortgage banking, insurance, brokerage, and leasing. U.S Bancorp operates in the Midwest and Western United States.

U.S. Bancorp's stock was trading in a well defined range with support at $22.98 and resistance at $25.31, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that U.S. Bancorp's stock is still near the broken resistance level, traders will be focusing on $25.31 to see if the stock holds the breakout without rolling over.