HOMEWORK: EMA200 AS TREND INDICATOREMA200 (Exponential moving average 200 periods)
The simplest moving average system generates trading signals when price crosses the moving average:
Go long when price crosses to above the moving average from below.
Go short when price crosses to below the moving average from above.
It works very well in trends, as you can see here with a high Risk/Reward ratios but it's plenty of false signals when price it is in sideways.
TRVC trade ideas
Similiar pattern on $CNot sure about you but i see a similar pattern forming, we call it a double bottom, once it completes its gonna be nice. Take a look for yourself!! We may find resistance at red trendline, but once its break that resistance, my target on $C is $80. Im currently long. Trade at your own risk.
Citigroup - Expecting a short term correction to the downsideSince the start of 2016, price has been rallying in a 5-wave structure to the recent high at 69.81 earlier this year in August.
RSI has formed a divergence as well, giving us another confluence of a potential retracement lower from here.
We are expecting price to correct to the downside towards 61.60 or even lower towards 56.44 area in the short term before another move higher.
*Disclaimer - ensure that you have analysed the fundamental of this company and do your own due diligence before trading.
Long Position CitiGroupIt looks like we have a channel forming here. I entered in to a long term position @ 68.14. I like financials long term and I chose to play that using C.
If you like to trade it looks like you could get 8-10%+to the upside in the next 6-8 weeks.
I hold long term positions for 1+ years and re-evaluate actively.
Happy Investing!
Citigroup (C) still has a ways to runI'm simply posting this chart as a reminder how far Citigroup (C) has fallen since its 2008 highs. Rising long rates will benefit the banking sector as banks borrow short and lend long, keeping the spread. Even though the stock has doubled off the lows, it's still priced at 1.0x book (cheapest in the sector, JPM is 1.7x book) and Barron's thinks the shares could appreciate another 50%: www.barrons.com
ARBITRAGE SELL CITIGROUP BUY WELLS FARGOIN 12 MONTH HORIZONT THE BIGGEST PERCENTAGE GAP BETWEEN BIGGEST US BANKS.
ASSUMING BIG DOWN MOVE IN BANKING SECTOR ON DISAPPOINTING RESULTS AND FADING TRUMP TRADE MAY LEAD TO SELL OFF WITHIN BANKS WHICH SHOULD LEAD TO NARROWING THE GAP.
TIME HORIZONT OF THE BET 4-6 MONTHS