Citigroup - BUY

Whatever is to happen with financial sector has little to do with the way that chart looks, you are frontrunning future events with your statement, whereas I try just to follow what is seen on a chart, one may be backtested, another may not, making it just a guess.

 

Your risk potential is huge.

IMO that chart looks like garbage, you're better off selling the next bounce.

 

I've been gradually scaling down buying C in my IRA. So far I'm averaged in at $21. I see this at $40 + in a few years.

 

you are fighting a massive trend by buying a horribly weak stock in a horribly weak industry. there is no real catalyst for this trade to work other than it came close to 52 week lows....again. does that sound more clear for you? further it has had a few "double bottoms" during this down trend.

if you have backtested this and you have other reasons for buying other than the fact that the stock has gone down then please feel free to share. if not then it's just a bad trade trying to buy a very weak stock that is close to lows and not trying to bounce on huge volume.

 

why? just because it is citigroup? again...i'd really just like to hear some good reasons why you think they will be able to double their market cap in a few years.

 

Okay. From a pure chart perspective and IMO:

I see absolutely no good sound reason to consider this stock at the present time, because:

1. It’s too far below the active Bearish Resistance Line (BRRL); and

2. It just completed a high pole warning that resulted in a Double Bottom Sell Signal (DBSS); and

3. It’s under-performing the S&P equal weighted index and its own industry; and

4. The current bearish price objective of $13 has a much better chance of being hit than $27-32 in the next 7-10 weeks; and

5. Both the 20 and 50 dsma are down sloped and today’s bar is bumping its head on the 20 so the average Joe and beat up mf manager are not going to buy here; and

6. Who does that leave left to buy?

Now I will grant you that the inactive Bullish Support Line and the Bearish Support Line have created a nice strong support pouch at $19.50. And, if someone wanted to be real creative they could say the bottom was made at $18 and call the current sell signal pattern a “Bastardized Shakeout” and they might well be right.

Let’s watch and see.

 

TY for a detailed response. I enjoyed reading it.

 

All my trading is wrapped round key fundamentals in trading, I will agree that what will follow does not necessarily apply to stocks, but we are talking about the US biggest bank here, I will add that the reason I don't get involved into fundamentals is because I don't understand them, more so even analysts that do posses those skills make errors of judgement analysing short term movements of price. So I just stick to what I know - pattern recognition. I know absolutely nothing about Citigroup, apart from it being a barometer of a financial sector. Considering my lack of education I have to employ KISS methods & in this instance this recommendation is also based on KISS. I specialise in histogram analyses, if anyone desires to make a comment on indicators' hopelessness, then you can save it, as I heard it all before

Here are some questions I have asked myself before making a recommendation to BUY Citigroup

1) What is C? It's the biggest US banking company
2) Why has the price gone down so much? probably down to Credit Crunch
3) Was the top seen via TA (no matter if hindsight now) Yes.
4) What is one of the main rules in business? Buy Lo, Sell Hi.
5) Where is price now? Near multi-year Lo.
6) What is histogram showing on the Weekly chart? Bounce pattern that at times leads to complete reversal.
7) Does the Daily chart's histogram concur with the Weekly? Yes it does.
8) What do technical projections estimate price to be at IF bounce is to take place? 27-32
9) What would the risk be at? Somewhere not too far from reaction low $17.90
10) What is estimated risk/reward? 1:2.5-4.5

 

citi is buy here...

banking index is @ 10 yrs lows and there is huge resistance.

so buy C, BAC, JPM and WFC

or just buy UYG....

 

Yes.....it is Citigroup, and they will bounce back. Might not get to $40, but i do see this rebounding in the next few years.