Citigroup Technical Analysis Summary
Sell Stop: Below 59.51
Stop Loss: Above 64.07
Citigroup Chart Analysis
Citigroup Technical Analysis
The technical analysis of the Citigroup stock price chart on daily timeframe shows #S-C, Daily has breached below Fibonacci 38.2 support level and is retreating under the 200-day moving average MA(200) which is tilted down. We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 59.51. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above the upper boundary of Donchian channel at 64.07. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (64.07 without reaching the order (59.51), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of Stocks – Citigroup
Citigroup stock edged up after Fed announced steps towards faster monetary tightening this Wednesday. Will the Citigroup stock price continue rebounding?
Citigroup is a global financial services company doing business in more than 100 countries with market capitalization at $119.53 billion. The company is active in two primary segments: the global consumer banking segment, and investment banking for institutional clients group. The stock is trading at P/E ratio (Trailing Twelve Months) of 5.75 currently – below the average for its industry, earned $75.38B revenue (ttm) and Return on Equity (ttm) of 11.69%. Rising US inflation is forcing US monetary authorities to shift from easing stance to a policy of tightening. Lower money supply makes loans more expensive and financial institutions like banks that earn money on providing loans usually benefit from rising interest rates. The Federal Reserve stated it will double the pace of its asset tapering program to $30 billion a month, planning to end bond buying stimulus in March. It also projected three quarter-point interest rate increases in 2022, another three in 2023, and two more in 2024. Lower money supply and rising interest rate expectations are bullish for bank shares. The Citigroup Inc shares rose 0.76% on Tuesday as the central bank convened its tow day policy meeting, and closed 0.66% lower on Wednesday as the Fed concluded its meeting. Data show the stock has lost 12.37% in the last one month period, and 2.3% year to date as of Wednesday. And the chart analysis shows the current setup is bearish.