Citigroup Inc. (NYSE:C) stock began trading on Monday with an immediate five cent drop right at 9:30 A.M. Eastern, and five minutes later at 9:35 A.M. Eastern slipped an extra three cents for a total of 0.08 loss right out of the starting gate.
In overnight trading before the NYSE opened there was a minor rally that ranged from 3.77 to 3.86, yet by the time the NYSE opened the door to regular trading hours all bets were off.
During after hours trading Citigroup Inc. (NYSE:C) has been trading in a perfect horizontal, sideways pattern, except for one 12 cent blip on the stock radar being the largest volatility of the “C” stock between 4:01 P.M. Eastern to 04:03 P.M. Eastern after regular trading hours ceased for Monday, 06/07/2010.
If you read my previous news installment on Citigroup Inc. stock from yesterday you know that I talked about the C stock being absolutely diligent in hunting and filling previously left behind gaps. If you did not, all you need to see is this post to see where all the past six months of C stock gaps have been fulfilled, and unfulfilled.
Note that during my analysis from the most previous highest high of 5.43 experienced on 08/28/2010 and forward, zero stock gaps of Citigroup Inc. have been left behind and not recaptured with exception of two in the image.
Probability dictates Citigroup Inc. stock begins a bullish trend in the future to recapture the two rogue trading gaps, but the question now is when. The previous two trading days has built up bearish momentum that should not be scoffed at and brushed aside when questioning is this a good time to buy or not. The “C” stock will need to taper off its bearish momentum before returning to a bullish trend.
If Citigroup’s stock continues its descent unchecked the first price level that should sit up and be worried is the low of 05/21/2010 which is 3.53, if this price level cannot contain the bearish onslaught and parry there is nothing left to restrain the bears from plunging down into the 02/17/2010 through 03/04/2010 quagmire that traded from 3.34 up to 3.48 – take special note that during this narrow channel that there were three trading days where the highest Citigroup’s stock could possibly go without hitting the ceiling and falling back down was the 3.48 price level.
Since we have identified the strongest point of potential support and resistance within recent memory, it’s possible that if Citigroup manages to fight down through 3.53 it should likely take at least a moderate amount of bearish resilience to chip away at 3.34 before digging through the narrow channel I previously called a quagmire because it took 13 days to get out of it, trading dates starting with 02/17/2010 that continued through 03/04/2010.
There is considerable support coming up for this bearish trend to slow and retreat from if you are holding Citigroup Inc. (NYSE:C), and we still have those two gaps that the “C” stock recently has a proven diligence of fulfilling. If Citigroup’s stock manages to slow its downward momentum, we will probably see them filled.
Potential alternative scenarios:
- Triangle formation could be forming, slight bullish retrace before resuming bearish descent.
- “Big Money” could also be accumulating shares before resuming strong bullish trend, the “quagmire” 12-day area could had been an area of silent share accumulation, and we are near those levels again.
- If too many investors think Citigroup’s stock shares are at too heavy of a discount, “Big Money” may be wary of trying to buy as cheap as before, with potential of bullish trend resumption and being left out in the cold.
As usual, I am not providing a suggestion to buy, sell, or even forfeit any stock shares you have, of any company.