Discussion in 'Stocks' started by Port1385, Jun 16, 2008.
Either Citigroup is a screaming buy right now or it isnt...you decide...
I dont get it....
why not wait for a retest of 18
or a test of 16?
why buy here?
Please advise on the date of the retest.
Look closely at the chart. The price has re-tested, however, the first bottom at 18 is what is called an island reversal where price gaps below a point of support for a short period of time. It wont make it to 18. The chart should be self-explanatory...
Now Jim Rogers had a good point and so did Warren Buffet. This company is loaded full of Tier 3 assets and who knows how much are they worth...is the credit crunch over, did the market price in all the tier 3 assets into its valuation? Who knows, but certainly this is a double bottom on both the short term chart and the macro all-data chart.
So this is a gamblers move, but they say to invest when blood is in the streets. Isnt there enough blood in the streets now?
Just to clarify, there is a double-bottom on the macro chart (black chart image) and the short term chart (white chart image). Its going to take some really bad news for price to move below that point and a whole lot of volume...
Can't assume a double bottom just because price is retesting what once was a support area.
Price usually tests support twice before letting go, this is exactly what it's "probably" doing. I would wait to short the pop on any obvious failure.
The trend is too strong on financials.
I remember in October of 98 I bought Citi I believe at $11 or $12 ... that was the day markets bottomed and never looked back!
If I remember it correctly the same day Ralph Acampora was on CNBC and predicted market was going to go much much lower... I guess that helped make the bottom!!
Take a look. Its holding right at the line...
Why touch this when they just announced more major write-downs are coming?