Citigroup (C) – Forming a Wedge

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Citigroup has formed a wedge and currently very close to the wedge support near the 61.8% Fibonacci Retracement Level.  Currently Citigroup just broke below all the three moving averages (20D, 50D, 200D) which is a bearish sign. Watch closely for the breakout. Base on the chart pattern, breakdown from this wedge pattern may send the stock to $1.00 but personally I think is unlikely to reach that level. I feel that the downside risk is limited and I am waiting Citigroup to go lower after breakout for long term investment.

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Citigroup (C) – Testing 50D MA

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US Financial stocks have been very bearish recently due to the debt concerns over PIGS (Portugal, Italy, Greece and Spain). This may present a good opportunity to buy some good financial stocks during this correction in May. Citigroup is one of the financial stocks for long term investing and I am waiting for the right entry point. Base on the chart, C is currently testing 50D MA. I am waiting to see whether C can stay above 200D MA support at $4.00 before deciding my entry point. If this 200D MA support is broken, $3.655 (61.8% Fibonacci Retracement Level) looks like a good entry point to start stock accumulation.
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Citigroup – Has Down Trend Started?

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Citigroup (C) said last Wednesday that it was on the verge of raising $17 billion (at a price of $3.15 per share) from investors toward repaying its federal aid. That discount was much larger than expected, leading the Treasury Department to postpone its plans to start selling the government’s 34% stake in Citigroup. Treasury had expected to reap a substantial profit on the shares, which it acquired at $3.25, but selling now would instead result in a loss of hundreds of millions of dollars.

Citigroup’s chart appears to be on the down trend. The stock price is currently below 20D, 50D and 200D MA. If Citigroup breaks below $3.16 (50% Fibonacci Retracement Level), the next support is $2.655. I am planning to invest in this speculative stock and waiting for the right price to enter.

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