Once interest rates started coming down in early July, the bank sector was punished. The exception is Citigroup. Its chart is in far better shape than the other big banking names, like JP Morgan, Bank of America and Wells Fargo.
Monday’s action was particularly notable with a strong breakout from a range on decent volume. In fact, Citi hit a new multi-year high on Monday, and with some follow through we are likely to see even higher prices.
Indicators are looking good as well. The MACD turned up and confirmed a solid buy signal. The lower end of the range (in the mid 60’s) held firm, as did the gap from June. The gap will eventually close, but for right now that support is meaningful. Money flow just turned positive again, and while the RSI is nearly overbought, we expect to see the stock follow the path of the yellow line, perhaps moving up some 15% (or more) by year’s end.
Citigroup (NYSE: C) Video Chart Analysis
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Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions worldwide. The company operates through two segments, Citicorp and Citi Holdings. The Citicorp segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. In addition, this segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2016, it operated 2,649 branches in 19 countries. The Citi Holdings segment provides consumer loans; and portfolio of securities, loans, and other assets. Citigroup Inc. was founded in 1812 and is based in New York, New York.