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U.S. Bancorp (USB) - January 8, 2024


 At SIACharts, we compare head-to-head battles of thousands of stocks, commodities, mutual funds and exchange traded funds daily and rank them by who is winning the most in their respective universes. The top 25% are considered the Green Favored Zone, 26-50% make up the Yellow Neutral Zone and the bottom half of each league table is considered the Red Unfavored Zone.

Earnings season for US banks starts on Friday and continues through next week. In the last two months, the sector has attracted renewed interest from investors, benefitting from the decline in treasury yields along with other interest rate sensitive groups.

U.S. Bancorp (USB) for example, recently returned to the Green Favored Zone of the SIA S&P 100 Index Report for the first time since May of 2021. Less than a month ago, the shares were in the red zone and had been there consistently since April of 2022. In the last month, the shares have jumped 35 positions to 22nd place.

Candlestick Chart Shows a New Uptrend Getting Underway

U.S. Bancorp (USB) shares spent a year and a half under distribution between October of 2021 and May of 2023, with the worst of the losses coming between March and May of last year in a big regional-bank sector flush. The shares then spent six months building a base for recovery, finally establishing a higher low in November.

The shares have recently come under renewed accumulation, finishing in the green for 7 of the last 10 weeks. A breakout over $39.00 completed a bullish Ascending Triangle pattern and signaled the start of a new uptrend that was confirmed by the shares moving back above $40.00 and not looking back.

Upside-resistance tests on trend appear near $46.00, based on previous tests, then the $50.00 round number, and the 2021 highs in the $56.00-$58.00 area. Initial support appears near $39.00 where the 10-week average and a retest of the recent breakout point converge.

Point and Figure Chart Stages a Big Rally:

A long-term downtrend in U.S. Bancorp (USB) shares bottomed out last May, but it took six months of base-building, including a summer false start for a recovery trend to really begin. Since the current rebound in USB got going in earnest back in November, accumulation has been very consistent with the shares rallying from near $30.00 toward $45.00 without even a 3-box correction along the way. Earlier this month, the shares snapped a long-term downtrend line, confirming the start of a new recovery trend.

Initial upside resistance appears near $48.10 based on a previous column high, then the $50.00 round number, $52.05 based on a horizontal count, and $55.25 based on a vertical count. Initial support appears near $41.00 based on a 3-box reversal.

With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, USB is exhibiting short-term strength across the asset classes.

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