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Surprising levels in focus for Citigroup.

February 19, 2020

Citigroup is back flirting near a resistance zone that is hasn’t made a monthly close above since before the 2008 Global Financial Crisis (GFC). This stock might be worth keeping in focus for any bullish breakout as there is a lot of potential ground to cover with any mean reversion activity.

 

Citigroup monthly: Price action for Citigroup is currently just under the $80 and the monthly chart below reveals how important this S/R zone has been for the stock. Citigroup has not made a monthly close above $80 since before the GFC, circa 2008, and note how this level was resistance back in 1993 as it has been for the last three years. It is also worth noting that the 61.8% Fibonacci retracement is up near previous S/R, circa $360, and that is a LONG way above current price! This would be the target though for any longer-term bullish momentum breakout above $80.

I’m often pulled up for my consideration of weekly, and especially monthly, charts but this $80 level would not be considered such a big deal if you didn’t scroll back to the monthly time frame!

 

 

Citigroup weekly: The weekly chart shows that price action is currently consolidating around this $80 and there is a triangle pattern in play giving traders trend lines to watch for any momentum breakout. The ADX is well below 20 for now but watch for any uptick here:

 

 

Citigroup daily: the daily chart is shaping up with a bit of a Bull Flag appearance so watch trend lines, and the $80 level, for any new momentum breakout:

 

 

Citigroup daily + Ichimoku Cloud: The Ichimoku Cloud, for my purposes, is simply a fluid zone of Support / Resistance. Watch for any new make or break at the bottom of the daily Cloud. Note, also, the declining Volume so watch for any break of this trend line:

 

 

Citigroup daily + Fibonacci: Any weakness and breakout to the downside would bring the 61.8% Fibonacci retracement of the recent swing High into focus and this is back down near $70:

 

 

 

Summary: Citigroup is trading near a resistance zone that it hasn’t made a monthly close above since before the 2008 Global Financial Crisis (GFC). Traders should watch this $80 level for any new breakout: up or down. A bullish breakout, however, would bring the $360 level back into longer-term focus.