Citigroup broke and closed a 5 year price resistance last week. Should consider buying on down days as long as price holds above red diagonal line. My bet is we'll never see it under $50 again.
Fundamentals are strong. Below book value - all other banks are above. A phenomenal restructuring play in the financial sector. Profit margins widen for banks when interest rates rise. Whether rates rise or not, the possibility is certainly getting factored into the price.
Long term trade...
Comments
vlad.adrian
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First, that is a false breakout. A false breakout is bearish, not bullish. Second, it's a mystery how you managed to draw that red line. Can you explain?
Lanmar
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The "mystery red line" has been corrected and shown more clearly in my new post. Citi does have a knack for false breakouts... I never stated Citi actually "broke-out." However, there is no denying that Citi broke and closed above significant price resistance. Citi is most definitely still in bullish territory for my time frame of trading - several months to several years. To be clear, if it breaks and closes below $49, I'm out.