Stock of the day: Citigroup

Stock of the day: Citigroup
In the ever-evolving landscape of the financial market, Citigroup has emerged as a notable point of discussion. The journey of this banking behemoth has been marked by its movement within a symmetric triangle pattern, outlined by black lines, for several months. However, the latter part of 2022 brought about a dramatic shift in its trajectory.
August saw Citigroup making a decisive move, breaking downward from the symmetric triangle, signaling a bearish turn. But the markets are known for their surprises, and November 2022 was no exception. This month turned the tables for Citigroup, transforming it from a bearish slump to a bullish recovery.

The spark of this transformation was the successful completion of a triple bottom formation, a bullish signal in the world of technical analysis. The confirmation of this trend reversal came with the break above the pattern’s neckline, indicated in yellow on the charts.

But the real momentum was gained towards the end of November and the onset of December. During this period, Citigroup not only reclaimed its position above the upper boundary of the symmetric triangle but also approached a significant milestone – the key horizontal resistance at $49. This resistance level, marked in blue, is reminiscent of the peaks achieved in June and July of the current year.

As of now, Citigroup stands at a crucial juncture. The stock faces resistance at the $49 mark, a level that has historically been a tough nut to crack. The current market reaction is bearish at this resistance, indicating a possible bounce off this level. However, the overarching market sentiment remains bullish, hinting at a potential upward breakout in the future.

Investors and traders alike are keenly watching this space. A daily close above the $49 resistance would not just signify a breakout but could potentially mark the beginning of a new bullish chapter for Citigroup. The odds, as they stand, lean favorably towards this scenario.
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