Stock of the Day: Citigroup

Citigroup is enjoying a very strong period, with technicals lining up in favor of the buyers. Not too long ago, the stock generated a proper buy signal after escaping from a pennant formation. This pennant, marked in blue, had kept the price locked in a narrowing range. The breakout to the upside from such a structure is often a strong bullish indication, and here it was no different.

Adding fuel to the bullish sentiment was the breakout above a red horizontal resistance — a key level that capped the price action throughout August. By clearing that hurdle, Citigroup confirmed the strength of the move and signaled the potential for a sustained rally.

As long as the stock stays above these two crucial areas — the broken pennant and the horizontal resistance — the outlook remains firmly positive. Buyers are in control, and the sentiment suggests that higher levels are likely to be tested in the near future.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-citigroup-5