Stock of the day: Citigroup

With the ongoing correction in American indices, bearish opportunities are currently more prevalent. Citigroup presents one such opportunity, having formed a triple top pattern, marked in yellow, on the upper boundary of a channel up formation. This triple top acted as a false breakout above the green resistance, indicating bearish potential. As trading continues within the channel, it’s likely that Citigroup will target the lower boundary, marked by the black line. The probability of reaching this lower line is quite high, making a bearish outlook on Citigroup very plausible.

The formation of the triple top pattern at the upper boundary is a significant bearish signal. This pattern often leads to a downside movement, especially when accompanied by a false breakout, as seen here. The rejection at the green resistance and the subsequent return to the channel suggest a strong downward momentum. Traders should watch for Citigroup to approach the lower boundary of the channel, which serves as the next potential support level.

Given the current market conditions and the technical indicators on Citigroup, the bearish sentiment is reinforced. Investors looking for shorting opportunities might find Citigroup a suitable candidate, with the expectation of a further decline towards the lower channel boundary. This scenario underlines the importance of monitoring key support and resistance levels to gauge future price movements accurately.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-citigroup-3