Technical Analysis – Citigroup stock under increasing bearish pressure
The bears have been more active, but their bearish breakouts have repeatedly failed. However, it looks like they will probably be given the chance for another sell-off as the momentum indicators are pointing to increased bearish pressure. More specifically, the Average Directional Movement Index (ADX) appears to have peaked, and it is now edging lower. More importantly, the stochastic oscillator has broken below its moving average, and it appears ready to move aggressively move downwards.
Should the bears decide to capitalize on these bearish tendencies, they would like to quickly overcome the support set at the 46.65-47.01 range populated by the January 16, 2015 low and the 50- and 200-day SMAs. Their next key target would be the lower boundary of the recent rectangle at 42.81. However, they must successfully clear the June 24, 2013 and July 14, 2022 lows of 45.04 and 43.34 respectively first.
On the other side, if the bulls finally decide to stage a rally, they will face resistance at the 47.80-48.39 range and the February 2, 2023 trendline respectively. The 23.6% Fibonacci retracement of the March 8, 2021 – December 28, 2022 downtrend at 49.60 is unlikely to trouble the bulls as they attempt to push the stock towards the 53.55 area.
To sum up, Citigroup bears remain in control through a series of lower highs. With the overall technical picture turning in favour of them, another retest of the lower boundary of the rectangle appears to be firmly on the cards.Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
