CITIGROUP, INC (C)

Technical analysis

Price

$ 60.18

52 weeks range

$ 57.40 - $ 80.29

Beta

1.82

Volume/ average

20.5m / 21.1m

Sector

Financial services

Dividend

3.39%

Citigroup Inc. or Citi is an American multinational investment bank and financial services company headquartered in New York City.


C despite the good performance at the beginning of the year, from June 2021 it embarked on a downward trend that brought it to the levels seen in January 2021: we believe that the stock is now approaching an interesting support area for future bullish swings.


Price

We can see how the $ 58 - $ 60.00 area has played strong support during the period January-August 2019 and supporto for most of 2021.

We could expect a bottoming phase to then start to upside again: the eventual break of the bearish trendline at $ 66-68 could also confirm a trend reversal.


Indicators

Looking at the MACD and RSI indicators: both are very extended to the downside with RSI oversold at 17.40 and diverging from the low reached on June 18, 2021.


Moving averages

Since October 2021, the 9MA has been acting as a resistance, hindering any possible attempt to rise: a break and close above it could therefore be an initial sign of recovery.

Looking at previous price actions, the 50MA has often been the separation between bearish and bullish periods: at the moment the moving average is placed on the bearish trendline that began in June 2021.


Conclusions

At the current price, we believe that Citigroup could be an interesting stock to gradually enter: the strong support area at $ 58-60.00, combined with the bearish extension of MACD and RSI, could suggest a bottoming in the short term in favour of a recovery in the medium term.

We believe the confirmation may come from the initial break of the 9MA at $ 63.00. Exceeding $ 70 could ultimately lead to a trend change with an extension to at least $ 80.00


Entry range $ 63.00 - $64.00

Target 1 $ 70.00

Target 2 $ 80.0

Stop loss $ 55.00

OTB Global Investments

14 December 2021

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