is on the verge of a massive move. However, the chart isn't
tipping us off as to which direction the stock will take.
The shares reside within a huge channel (blue lines). Not only
has this channel been in place for a while (15 months), it's
massive in size, ranging from $24.50 to $38.
This chart shows the price of
shares along with an important channel pattern to
Citi's stock is currently banging against channel resistance.
If this resistance holds, the shares have a long way to fall
within the current range. Alternatively, the shares may break out
of the pattern, inducing a rally that could initially reach as
high as $51.50.
Either way, it appears that a monster move is coming.
Bullish traders should watch to see if $38.50 breaks next month.
A move beyond that price could provide the first signal that the
shares are preparing to advance to $51.50.
Though $35 is a primary support area (read more about that
), bearish traders may want to watch the $32 zone more closely.
Buyers would protect that level if the stock was preparing to
rally. This means that any push below $32 is an opportunity to
short the shares, profiting from a move lower to the bottom of
The stock has experienced a nice ride over the past four months.
Citi will need to expand on that positive momentum if it expects
to rally back up to its 2011 high.
Equities mentioned in this article: C
Positions held in companies mentioned above: