Monday, July 15, 2013

C Citigroup Weekly and Daily Charts; Earnings Imminent

C earnings may hit as this missive is typed. C had to undertake a 10 to 1 reverse stock split a couple years back since the stock price was under 5 and many funds are prohibited from buying stocks that are priced under five dollars.  Thus, at 50.81, C remains in essence, a five dollar stock.  The weekly chart shows a W pattern bottom one year ago.  Price topped in May-June but during the recent Fed goosing of equities, C recovers back above 50. There is no reason for price to come back up since the indicators are weak and weighted to a downside move ahead. An M top, or double-top, as others call it, may be playing out now. The daily chart shows an upward-sloping channel that failed in June. Price is currently back kissing the bottom rail of the channel so C will either bounce, to return into the safety of the channel, or die. The daily chart shows near term mojo continuing for a few days ahead. Stochastics are overbot. 

The blue lines on the daily chart show a potential H&S pattern with a downside target at 36-ish if the 45 level fails. Here's the earnings; EPS beats at 1.25 vs. 1.17 estimate.  Top line revenue is in line at 20.00 billion vs 19.75 billion estimate. C bounces two percent to 51.90. So the news is happy and price moves higher to further back test the red trend line. The daily chart shows some near term oomph and the earnings fall in line with this projection but the weekly chart is maintaining a weak posture forward. Projection is sideways to sideways lower for the weeks ahead. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 8:24 AM:  Knee-jerk reaction is a jump to near 52 but price is now at 51.58. What else you got, C?

Note Added 8:34 AM:  C gets a second wind and tags 52.00.

Note Added 8:54 AM:  C moves to 52.20 and encourages the financial sector to begin the day.

Note Added 7/16/13 at 7:12 AM:  C ends the day at 51.81, up one point, +2.00%, on the happy earnings news, printing a hanging man candlestick. The HOD was 52.16.

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