The technical picture of the US Bancorp stock (NYSE: USB) on our 4-hour chart shows that yesterday, the share price jumped strongly, breaking above a short-term tentative downside resistance line taken from the high of March 29th. Although there is an indication that a further move higher would be possible, we would prefer to wait for a breakout above the 53.67 barrier first. Hence our cautiously bullish approach for now.
A push above the 53.67 barrier, marked by the current highest point of April, would confirm a forthcoming higher high, potentially clearing the way towards the 55.66 hurdle, which marks the inside swing low of March 24th. Initially, we might see a hold-up around there, however, if the buying activity remains strong, that could result in a break of the 55.66 obstacle, which may lead USB to the 57.86 level, marked by the highest point of March.
The RSI is currently flat but sits above 50, indicating positive price momentum. The MACD, on the other hand, still sits below zero, but is now pointing higher and running above the signal line. The MACD seems to support the idea of waiting for a break above the 53.67 barrier first, before considering a further move up.
Alternatively, if the stock drops all the way below the 49.78 hurdle, which is the current lowest point of April, that will confirm a forthcoming lower low, potentially spooking some buyers from the arena for a while. USB may then travel to the low of February 16th, 2021, at 48.04, a break of which might set the stage for a move to the 46.85 zone. That zone marks the low of February 11th, 2021.
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