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Citigroup (C) has long been noted as one of the worst situated banks compared to all the other big names. After sharing 4th quarter numbers and 2010 outlook, there is certainly ambiguity to how investors are taking in the news.
They exceeded expectations, but still reported huge losses and some are questioning whether they truly have a long-term plan in place.
While most, if not all, of the big banks have experienced some sort of rebound in stock prices since the initial crash a couple years back, Citigroup has yet to see any significant move higher and still sits below $5.
If you have followed me, then I’m sure you are well aware of my liking to Bank of America (BAC) in this category. After all, I have picked it for both my stocks to buy in 2009 and 2010. See 2009 stock pick results.
Obviously I can’t make any real outlook until I look at the stock chart. Below is a 3 month time frame of Citigroup…
There are a couple notable factors that initially stand out to me.
- The RSI is crossing back into bullish territory (over 50).
- Moving averages are near crossing; however, looks like they will not. Remember that a longer time frame moving average crossing over a shorter time frame is a bearish signal. Because this looks like it won’t happen, consider that a bullish signal.
- Volume is picking up as wedge narrows.
- MACD is picking up steam higher and closing in on 0.
- A break higher out of the wedge leaves a price target of $4.20.
All in all there are a lot of signals setting up to make the Citigroup chart look bullish. While I am not a big fan of this stock long-term, short-term there is a lot to like of this stock. Now we just need confirmation of this move.