Breakout of Citigroup Inc. (NYSE:C) stock could happen before 2010 closes if today's gap manages to be ignored and other factors
Breakout of Citigroup Inc. (NYSE:C) stock could very well happen before 2010 is all wrapped up and done with. Being in the last month of the year 2010, that would definitely be soon. A bullish breakout has the potential of occurring as positive bias endures and continues to do so ever since shares last tested the $3.63 price level – an area that has remarkable, tremendous support.
Charted with major support lines plotted directly from 12-month highs and lows which provide extra stability there is a considerable chance of a significant breakout outside of this massive symmetrical triangle pattern.
Citi’s stock has turned into a technical analysis workshop lesson with the invalidation of more recent trend lines and the resurgence of the old. The image shows Citi’s long-term trend outlook, which still remains valid until broken . The white lines form a bearish triangle which has been invalidated and the result is a break to the upside after the third attempt at resistance.
Unfortunately there is also the potential that today’s price gap may impede a breakout before 2010 is closed out, as Citi’s stock tends to honor price gap refilling ‘historically well.’ Additionally, a break below $4.10 could put a breakout on hold and shares of Citi would likely continue to consolidate while a bearish scenario by that point increases in probability. Until then, positive bias has shares of Citi pointing north.