Citigroup Inc. (NYSE:C) stock is trading near the 50 SMA and support from price action as a breakout is increasing in probability
Citigroup Inc. (NYSE:C) stock is currently trading near support. For two days now Citi has found support at the $4.76 price level, and now the 50 SMA is slowly starting to become a pending problem on the horizon for technical traders who give regard to moving averages. It stands to be that since the Treasury finally let go of Citi that shares have never been below the 50 SMA, a current fact of which investors would prefer to remain true.
Citi’s irritable consolidation of price action is slowly tightening and will inevitably force a breakout. Within the current sideways channel, shares are slowly making lower highs. However, on the other side of the coin Citi is as well finding points of support which is going to render a breakout sooner rather than later in all probability. It would bode well for a bullish breakout for shares to remain above the 50 SMA.
‘C’ can be reasonably called a gap-hunter, however the past couple months it has been leaving some of them behind. Prior to that, you would have to go back over a year to find a gap that Citi did not retrace toward and reclaim. The problem with this are that shares are currently situated between two significant gaps and the southern one happens to be riddled with significant support, a triple amount at the $4.54 price level.
With lower high’s continuing to be made throughout the past two weeks this period coupled with weak price action a technical trader will likely look and immediately think this is a bearish pattern. Again, there is aforementioned support, too. If Citi does not get a move on before this week closes, it will be an agonizing wait for Monday’s open for traders who have hoarded shares to see what is in store.