Here is another banking sector article, this one for Citigroup (C). This article will not only help to look at this individual stock, but it can also reinforce charts and patterns that I've identified on other bank stock charts.
The first assumption that I am going to make before looking at any charts for Citigroup is that it is probably in or near the end of a Wave 3 in a Bullish Impulse wave pattern. That is where I have noticed the share prices for almost all other banking stocks. I have no reason at the outset to think Citigroup's charts will be any different.
Since Citigroup (C) reported earnings on January 18, 2017, the market has had plenty of time to digest the information. So let's start reviewing some of its charts and see what action is most likely in store for its share price!
Citigroup (C) - 20 Year Chart
This first chart for Citigroup (C) is the same as all other banks I've covered, a 20 year monthly candlestick chart to look at any of its potential longer-term trends.
After reading some of my other banking stock articles, you may have noticed that I placed Fibonacci Extension Tools on each of their charts to look for upside potential. However, sometimes alternative means of calculating upside price targets need to be used. That is why I used the Fibonacci Retracement Tool on this 20 year chart to calculate what I think is the minimum retracement for Citigroup's massive downtrend.
I placed a Fibonacci Retracement Tool on the last leg of the downtrend to be conservative at first. Where I placed the tool is on Wave 5 of a probable Bearish Impulse wave pattern. Therefore just looking at the retracement possibilities for Wave 5 rather than the entire downtrend provides more realistic price targets to watch for in the "short-term".
Look for the 38.2% Retracement Line. That line could be….
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I continue discussing its upside minimum trade that I would anticipate as well as pullback areas to make scale-in purchases for the current uptrend.
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That sounds like some good bank (pun intended)
Which time frame are you watching the MACD in for the slow down in selling?
I would be watching the weekly candlestick chart and MACD Histogram for the slow down in selling momentum. In the “Scale-In Opportunity” section above, just turned bright red. Wait for at least the first decrease in the MACD reading on a weekly basis.