Citigroup Inc.'s (NYSE:C) stock is bearing down toward support of its previous channel range
Citigroup Inc. (NYSE:C) stock is bearing down toward support after reentering an old range from over a week ago. The low of this previous range is $4.10 and with shares of Citi being insistent on trading to the downside today the old low is not very far away. It would not angry many shareholders of Citi to see a rebound any day now to the upside, and the good news is that probability is on their side of a rebound sooner than later.
Citi has not traded at an oversold level since late September and ‘C’ stock is nearly back there again. However, there is usually the prerequisite consolidation channel that needs to take form before a surge and with Citi being on an overall bearish retrace for eight days now the ground is not technically fertile to provide a bullish surge. If it did occur, likely there would be company news released providing fundamental support for such a move.
On the other hand to provide an argument for a bullish move is that the current bearish downside cannot be sustained indefinitely and has to break as mentioned earlier, sooner than later. An additional bonus for Citi is that the bearish momentum of the EUR/USD currency pair is slowing and coincidence or not, Citi and this currency pair have been correlating since August more often than not.