USB trade ideas
Doing a Bancorp sell-off at $35.47First off, please don't take anything I say seriously or as financial advice. This is on opinion basis as always. That being said, let me get into a few of my key points. Bancorp has long potential, not many are disputing that. However, currently as a short term trade, I would suggest doing a sell-off at $35.47 as a negative retracement or bearish run seems imminent. Analyst are also currently giving it a sell rating as well.
USB to Long, V pattern formedExisting Condition:
1. in 60 min, down trendline break by breakaway Gap (G1)
2. Formed V reversal pattern
Entry at demand zone: 33
Stop below this zone: 30
Target1: 38; risk/reward=1:1.5
Target2: 46, risk/reward=1:4
This is a trading school homework. I need 6 months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
In my real trade, I use options. I bought Jun C35 Call, limit 2.4;
stop lost about 1.00.
Sum of my ideas:
5 active, 7 winner, 1 loser, 0 pending for condition;
4 analysis only, 8 cancelled;
USB - DAILY CHARTHi, today we are going to talk about U.S. Bank and its current landscape.
As nowadays we live in a consumerist society and access to a credit card has continually become easier to obtain, is reasonable to predict that the card debts are also going to rise too, as financial education isn't the strong point of U.S consumers, and are used to the debt culture.
The heat up U.S economy put credit card companies in a more comfortable zone as the unemployment rate remains near to historic lows, which helps customers to keep up with their bills. However, the question that worth to be raised here is, if the 90 days past due card debt is probably surging to 2.01%, the highest level since 2010 amid a heated economy, what is going to happen with this type of debt, once the U.S economy make its first downward movement of correction and make harder for customers pay their credit card bills. Even with the credit card issuers tighten their credit standards, we can't be sure it's going to be enough to avoid a crisis on the sector, which could lead to a flood of bad debt, decline of new credit card issuance and other types of liabilities. This scenario could mean concerning news for U.S. Bank if the company doesn't progressively start to deploy the proper countermeasures for this scenario.
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COMPRA PUT EN 0.89$ A 57.50$ CON ACCION EN PRECIO 59.55$ VENCICOMPRA PUT EN 0.89$ A 57.50$
CON ACCION EN PRECIO 59.55$
VENCIMIENTO 2 MESES
ENERO 17 2020
...
USB 18 RRR longTrading Methodology:
1. An asymmetric bullish/bearish pennant is drawn using ascending and descending curved trend lines with a minimum of three price action touche points per line. The direction is determined by the previous trend.
2. The angle tool is applied from the earliest two trend touch points, beginning at the earliest touch point.
3. A trend-based Fibonacci retracement triangle is drawn starting from the earliest trend touch point and ending at the earliest touch point of the opposite trend line .
4. Based on the degree, of the earlier defined angle, the appropriate (and secret) levels are selected for the fibonacci retracement ; two levels for stop-loss and two levels for take-profit. The closest stop-loss level to the current price level is the top priority stop-loss. Though the secondary stop-loss level is often chosen for some markets such as FX and some equities in order to account for seldom unexpected resistance breaks. The greater target level is the top priority, and where majority of the shares are sold, though some may choose to close part of the position at the first target level or set it to be the stop-loss once price exceeds it. Entries should be laddered in around the levels closest of the yellow line.
This trading strategy can be applied to any market and time frame, and positions most often garner the greatest risk-to-reward ratio with the highest success rate. What more can you ask for? I will only be posting my unique trading strategy until EOY. I work solely with price action to identify pennants and apply unique trend-based fibonacci retracement levels for SL and TP levels. Reach out to me if you have any questions.
Bearish H&S in USBYet another H&S structure (with smaller fractal in red noticed a while ago). Now the structure is confirmed by a rising wedge which may be already complete or in its final stages. Tomorrow USB will report earnings. This could make the price swing and complete the wedge or break down from here. Either way, I will be buying puts today. This chart made me reconsider BBT trade where I saw an alternative interpretation in line with my bearish stance on USB and the market in general.
Jono Head and Shoulder (Top) #USBHead and Shoulder (Top)
Entry - $40.56 at close (Strong Bearish Candle for Entry)
Stop - $43.50 - Will adjust lower
Target - $33.00
Breakdown in financial - Review JPM, C, GS
USB
USB - Strong Investor Hold (possible ascending triangle)This USB chart is almost linear since late 2011 to date. Which is very nice, and preformed just under 200% since late 2011. USB is a strong linear chart for a passive investor.
It is beginning to fill out an ascending triangle. If this ascending triangle plays out - it is either a bullish case, or a continuation pattern (for very long term investors). This possible pattern is so far out I would not recommend incase of a US correction recession before the end of this pattern scenario.
For traders, it looks like the 200 EMA is about to cross back above the 50 EMA. Also, it is respecting the diagonal support. the 1H - 4H timeframe is also showing another smaller ascending triangle - indicating a continuation above the $52 rage.
H&S in USBNYSE:USB
WHY
1. USB traced well pronounced head and shoulders pattern on D and W.
2. Other industry (finance) stocks such as GS, WFS also posted a reversal on W and M.
3. SPX500 seems to be looking south on W
TRADE DURATION and PROFIT TARGET
USB and market in general might be starting long bearish trend however here we target the distance to
- approximately equal to the height of the H&S structure
- 200MA on W basis (highest timeframe where pattern is visible)
- support determined by previous highs
HOW
1. Short stocks with risk reward 4.0
2. Avoid options as it can be a long story
ENTRY
Trade will be entered 4H (lower timeframe) with SL
Waiting for at least 0.5 Fibo retracement for better RtW ratio
