Chart of the Week: Citigroup
This week we’re gonna be focusing on one of the big banks – it’s Citigroup; C is symbol for that one. Let’s take a look at this chart here. It’s been very strong since making a bottom at the beginning of April.
This stock has been making higher lows since that bottom put in at around the $55 level. Those higher lows is our textbook definition of an uptrend.
Look at this relative strength. It’s been super powerful, right up to an overbought reading.
We ripped right through a resistance level a couple of days ago. Now we have another one at this gap down from back at the early part of march – let’s call it about $77.
What I like to see here is the stock has been kind of basing here for the past few days after having a nice big gap up about 7- 8 days. Basing up here from that gap is positive. It means that big institutions are not selling the stock right now.
We are not too far off from all-time highs on this name – well, recent highs from this name – about $84 – which would be, from current levels, that would be an 8 1/2 – 9% move to the upside.
We’ve had good volume as well for the past few weeks. And MACD is on a buy signal. And we have good Chaikin money flow here. So it’s all coming together for Citigroup right now.
We don’t have earnings coming out until the second week in July, so plenty of room for it to move without any news. But there is going to be some news coming out from the Fed when the stress test results come out. And that could be a catalyst to move the stock even higher if they do come out with some bigger buy backs or even possibly increase the dividend as the result of a positive stress test. Usually they do come out very positively at the end of the June.
We’ll see what happens. Citigroup has been a strong stock. Even if it goes sideways here, not a problem. I think this stock has got some upside lift to get into this range between $77 and $84 and start eating away from some of this resistance in this band.
That’s Citigroup. Thanks so much for watching everyone and I’ll see you next time.
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