U.S. Bancorp Is Near Resistance

Published on Thursday, 28 June 2012 08:20 Written by TradersHuddle Wire

New York, June 28th (TradersHuddle.com) - Shares of U.S. Bancorp (NYSE:USB) are trading very close to calculated resistance at $31.94. The stock ended the trading session at just $31.43, which is near levels that make it difficult to buy or start a position.

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 range is defined by its calculated support defined at $28.58 and by the resistance level at $31.94; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for U.S. Bancorp. However, as the stock pulls back towards $28.58 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $31.94 then traders will get an opportunity to enter the stock as it moves to a higher range.