A look at a 2 year chart and 7 month chart of Citigroup tells us where we might be heading.
Looking at the 2 year chart :
- Trend is upward
- will face a resistance at 4.75
A look at the 7 month chart :
- Resistance at 4.3 was broken
- volume was up recently, which is a necessary support of the break-out action
- 50d MA and 200d MA have been winded around each other for the last 7 months, but the 50d MA seems to “leave” the 200d MA towards the upside.
- A small position can be taken, with 4.3 as a support. A break of the 4.75 level is the sign for increasing positions