Stock Chart Analysis C

Posted by downtowntrader | 9/11/2009 12:08:00 AM View Comments

Stock Chart Analysis C
Citigroup Inc. (Public, NYSE:C)

I've been long a few calls in Citigroup from it's initial breakout, but I may be adding to the position here soon. C has been developing nicely, and in the chart below I highlight what it is I am looking at and why I like it. C cleared a multi month base in late August and has been consolidating above the breakout area for a couple weeks now. Volume has increased dramatically on the recent move higher, and C has held above its rising 20day moving average since July. While some of the volume could be attributed to High Frequency Trading as C comes into the spotlight, there is a distinct possibility that some of this volume is accumulation by institutions. It looks like C had a capitulation low in March, and with the move above the base that followed that low, it's quite possible that C is putting in a long term bottom. While I'm not treating this as an investment, the fact is C could be getting institutional support moving forward, and could have a nice surge with a move above the recent high. With C possibly finding support here at the 20day sma, it might be a decent place for me to add to my position. Please complete your own due diligence if considering this trade.

Good Trading,


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