On March 28, 2017 Citigroup (C) crossed above its 50 day moving average (MA). Historically this has occurred 349 times. When this happens, the stock does not always continue to rise. It has a median gain of 4.839% and maximum gain of 62.909% over the next 18 trading days.
When we take a look at other technical indicators, the relative strength index (RSI) is at 49.2324. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is looking for direction but favoring the highside at the moment.
The true strength index (TSI) is currently 3.5677. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is looking for direction. Even though it is still a positive number, it is trending downward.
The negative vortex indicator (VI) is currently 1.1597. The VI determines current trend and direction. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is trending downward, but the positive VI is also beginning to trend up.
Considering the moving average crossover, RSI, TSI, and VI levels, the overall near-term stock direction appears to be slightly trending upward. Based on historical movement compared to current levels and the current upward trend channel, the stock could gain at least another 5% over the next three weeks. In its current trend channel, Citi has been at this position (not price) twice since December 2016. The stock rose 6.46% over 18 trading days to the top of the channel and also rose 5.92% over 15 days to the top of the channel. Similar movement is possible which would result in a gain of around 5.79%.
Citigroup is scheduled to have an earnings call within the next 15 trading days which could be the catalyst for this move up. The current consensus Earning Per Share estimate from Earnings Whispers is $1.28, which would be the highest Earning Per Share since October 2015.
When we take a look at other technical indicators, the relative strength index (RSI) is at 49.2324. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is looking for direction but favoring the highside at the moment.
The true strength index (TSI) is currently 3.5677. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is looking for direction. Even though it is still a positive number, it is trending downward.
The negative vortex indicator (VI) is currently 1.1597. The VI determines current trend and direction. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is trending downward, but the positive VI is also beginning to trend up.
Considering the moving average crossover, RSI, TSI, and VI levels, the overall near-term stock direction appears to be slightly trending upward. Based on historical movement compared to current levels and the current upward trend channel, the stock could gain at least another 5% over the next three weeks. In its current trend channel, Citi has been at this position (not price) twice since December 2016. The stock rose 6.46% over 18 trading days to the top of the channel and also rose 5.92% over 15 days to the top of the channel. Similar movement is possible which would result in a gain of around 5.79%.
Citigroup is scheduled to have an earnings call within the next 15 trading days which could be the catalyst for this move up. The current consensus Earning Per Share estimate from Earnings Whispers is $1.28, which would be the highest Earning Per Share since October 2015.
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
