C (Citigroup, Inc.) FUTURE H/L daily price swing dates The Djinn Predictive Indicator is used with permission of the owner.
CCCITIGROUP CDR (CAD HEDGED)
32.56CADD
−0.26−0.79%
At close at Jun 17, 19:54 GMT
CAD
No trades
CITI trade ideas
Short CitiTechnical: Immediate term overbought with significant implied vol discount relative to 30 day realized vol. Stochastic oscillators confirm overbought conditions.
Fundamental: Citi is a large holder of foreign, dollar denominated debt. Due to the strength of the dollar in the past quarter, I expect that FX will show significant headwinds in their earnings call on Monday.
Short term price target of $42.76
Best of luck,
Bounce play in the financial stocksThe financials (XLF) have broken down from its top formation effectively ending a 9 year bull run.
However, the break was a bit too hard too fast and I think there is some room for a decent size bounce if the Fed is willing to give some hint that the pace of tightening is negotiable to the circumstance.
Among all the big names in the financial space, I like Citigroup the most as it has some appealing technicals.
Notably, the measured move target has been achieved and it is trading into the big consolidation range just before the last thrust to the upside.
I would reckon the entry of 54 dollar is attractive from the risk reward basis that the 60 dollar mark should be a reasonable target in the scenario of a favourable Fed policy announcement.
C - Inverse Head and Shoulders breakout!Following some upbeat forecasts for the financial sector and with JP Morgan announcing a 43% dividend increase, financial stocks soared today. From my analysis of the sector, C appears to have the most bullish chart at the moment and should be a top pick in the financial sector at this time.
Today, C broke out of an inverse head and shoulders pattern. Inverse head and shoulders are among the most common and most reliable reversal patterns in technical analysis. With the breakout from the neckline, the pattern provides a price target equal to the size of the head from the neckline (the cloned and placed blue boxes). With multiple supports now below the current price and a price target of $82 it offers a fantastic risk/reward long play. This represents an 11% gain over today's close in the short term (~3 - 6 months). I entered a long equity position today. I think it is fairly likely that C re-tests the neckline, in which case I will be buying long call options if any re-test fails, or on any pullbacks to its price target.
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As always, the responsibility for managing your position is your own. I am not a financial adviser nor is any content in this post intended to be financial advice. The information presented is my opinion, based on tools I have learned from others sharing their opinions and my experience in the markets. I share these ideas to generate discussion and have others critique my analysis because, as always, I am still learning. With that in mind, the outcome could be quite different than what I am predicting and this is for entertainment purposes only. It should not be considered financial or investment advice of any kind. Readers should consult with a financial or investment professional to determine what may be best for their individual needs.
$C - The complacency must be immense You know after this past week's rally - I was more than surprised to see it be led by financials. I'm more bearish on the financial sector than I am every other sector combined. Even without the bias - everyone has a "dip" they can justify buying regardless of the PL it makes - typically, when one sector makes a new 52 week low 3 times within the past 4 months - you almost scratch your head at what the market sees lol. I can understand the investors still bullish on the fundamentals of the banks, that & the contrarian side of buying the under-performers of the market & all but.... makes me wonder whether I'm going crazy or everyone else is lmao. Nonetheless - $GS was the bank that caught my eye a while back, just because of the resemblance of the pattern correlated to the 2015 flash crash (whatever you wana call it). $PFG was another, but more-so a comparison almost mirroring the 2008 financial crisis. Regardless, I wanted to post one last of the financials to put the theory to the test because if there was any complacency I was willing to short right before the downfall - this past week was the time. Definite kudos though, because even in 2015 - there wasn't as much willingness to buy on the consistent weakness. If you're not convinced by the pattern comparison, or the price placement between moving averages, you probably aren't convinced by the underperformance of the entire financial sector being worse than that of $EM, but, to each his own I guess.
