Stock Technical Analysis: Citigroup (C) Finding its Support
Written by Sidney on September 15, 2009
Stocks of Citigroup (C) have pull backed since its recent high of $5.43 on Aug 28, 2009, and has hit key support levels. Technical Analysis of Citigroup stocks below shows a band of support between $4 and $4.48, generated by several previous resistance points between Jan 28, 2009 and May 20, 2009.
Stock Technical Analysis of Citigroup (Sep 15, 2009)
A sell signal is triggered if the stock price falls definitively below $4 on heavy volume. Until then, wait and hold on to Citigroup shares if you already own them. Do not buy this stock unless the price exceeds its previous short term high of $5.43.
I suspect that Citigroup stocks have been dampened by recent news of the Treasury Department talking to Citigroup about how to sell the roughly one-third stake the government acquired as part of its bailout of the bank, and that the Department may start unloading shares as soon as October and sell the holdings over the next six to eight months. The sale of such a large chuck of stocks inevitably weakens the stock price.
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