U.S. Bancorp Tight Range between the 50 and 200Day

Published on Thursday, 29 July 2010 05:44 Written by Danny Miller

New York, July 29th (TradersHuddle.com) - Shares of U.S. Bancorp (NYSE:USB) closed the trading session at $24.31 near its 50 day and 200 day moving averages currently set at $23.4111 and $24.3753 respectively. U.S. Bancorp's price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

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 price action seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter U.S. Bancorp with a small position and wait for the stock to break out above the 200 day moving average at $24.3753, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $23.4111 breaks it could mean further downside in the horizon for U.S. Bancorp.