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Financials

Chart Review of Citibank (C)

Citibank. Much as I am bearish about its prospect for a long time to come, I have to acknowledge that there are factors beyond me that has prevented this company from going down completely.

Rather than figuring out such issues, let’s just focus on the chart and see if there are areas where we can trade this counter.

The good news is with the good bank-bad bank announcement, C has rally a fair bit.

While the chart shows Tenkan sen crossing Kijun sen on 19 March, what follows suggests that this rally for C is running out of momentum in the short term. The first key reversal comes when it hits the weekly resistant level of 3.85; one that sees it closes at the opening price of the previous day.

More importantly, look the kumo resistant ahead. Thick kumo cloud suggests that resistant levels will be heavy with trend still showing downwards pressure.

From the Kijun sen, we can see that it is flattening out. This suggest that the price level will  most likely remain at this level. My suspicion is , it will trade between $2 and $2.60

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