Citigroup Inc. (NYSE:C) stock consolidation continues however it is no stranger to it as Citi has risen from each occurrence for half of a year
Citigroup Inc. (NYSE:C) stock has continued to consolidate as price action volatility weakens. Bears have encountered resistance today at the $4.81 price level which has been providing support for two consecutive days now. A bearish drop below would place intermediate doubt into Citi rising back above the five dollar mark sooner rather than later.
Citi is no stranger to the 50 SMA, it often traded around it when the Treasury still had a gargantuan portion of shares. Since then, Citi has had no problem staying above the 50 SMA. However, if shares of Citi do not break out of consolidation to the upside shareholders will be relegated to observing how Citi trades around the moving average post-Government intervention.
For half of a year Citi has exited stints of consolidation positively, and on balance volume remains healthy in correlation to share price, even more than when Citi was above five dollars per share during trading in April of 2010. However today Citi does not have the artificial influence of the Treasury to guide share price any longer, and it is free to trade as far as investors are willing to push it.
Averages aside, to more reliable price action there remains the large price gap that was created on the open of the 18th of this month, and another price gap south from the 7th of December, 2010 which is being heavily guarded by significant support at the $4.54 price level. There is a heightened probability of either one being reclaimed depending on a break of $4.92 or the $4.72 price level to the south. Currently, the company has a market value of $139,876,563,735 at the time of writing, with 29,050,169,000 shares outstanding.