C Citigroup Daily Chart

C Citigroup chart ahead or earnings tomorrow. Downward channel in place showing lower lows and lower highs. 20 MA is under 50 MA which is bearish. Two gap fills would be satisfied with prints in the 4.20-4.30 area. Note the falling blue wedge, oversold conditions and positive divergence (blue lines) that provided some relief from the falling price in March. Money flow, however, printed a lower low in mid March and said it wants to see another price low at 4.30-ish or lower.

From the weekly charts (simply enter C in the search box to view prior charts), the bottom rail of a long term ascending triangle is very agreeable for a touch in the 4.2-4.3 area and the 50 week MA is 4.28. If we place all this information into our technical analysis pot and stir, the projection is that earnings will be somewhat in line, another repeat of JPM and BAC last week, and price will fall to the bottom rail of the channel shown above in the 4.2-4.3 area. This print will provide another lower low to keep the downward trend in place and it will also serve to fill the gaps left behind in the Fall.

The bright side for die-hard C bulls, however, is that after a little more pain, oversold or near oversold conditions will exist along with positive divergence (pink lines) and a move back up will occur after the pain is received at 4.2-4.3. Reassess C once the 4.2-4.3 area is achieved. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.