Approaching Resistance - U.S. Bancorp

Published on Friday, 10 February 2012 07:00 Written by TradersHuddle Wire

New York, February 10th (TradersHuddle.com) - Shares of U.S. Bancorp (NYSE:USB) are trading very close to calculated resistance at $29.74 with the current price action closing at just $29.34 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $27.30 and by the resistance level at $29.74, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for U.S. Bancorp, as the stock is well above support, however, as the stock pulls back towards $27.30 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $29.74 then traders will get an opportunity to enter U.S. Bancorp stock by establishing a position as the stock moves to a higher range.