During the Lightning Round segment of Mad Money Friday night, one caller asked Jim Cramer about U.S. Bancorp (USB) . "I think that's a good one," said Cramer. Let's check out the charts of USB to see if this is a good level to be a buyer of the stock.
In the daily Japanese Candlestick chart of USB, below, we can see that prices have been correcting to the downside the past two weeks. Prices are above the opening today suggesting that the $57 area is acting as support. USB is now below the rising 50-day moving average line. The 200-day moving average line has a bullish or rising slope and intersects down around $54.
The On-Balance-Volume (OBV) line shows a decline in December suggesting that sellers of USB have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has declined to the zero line so its next move is important -- either a crossover to the upside for a buy signal or further declines below the zero line for an outright sell signal.
In this Point and Figure chart of USB, below, we used weekly price data to get a longer-term price target. Here the software suggests that $77 is a potential price target in the weeks and months ahead. The volume by price scale (left side) suggests that the low $50's is strong support.