u s stock focus bullish breakout seen in citigroup 1853662017

Medium-term technical outlook on Citigroup (C)

(Click to enlarge charts)

Key technical elements

Since its 27 June 2016 low of 38.31, Citigroup has been evolving within a medium-term bullish ascending channel with its upper boundary now acting as a resistance at 72.00 that also confluences with a Fibonacci projection of 0.618 from the upmove from 19 Feb 2013 low to 04 January 2017 high projected from 02 February 2017 low (see daily chart).
Yesterday’s price action has staged a bullish breakout from a 6-month range configuration resistance at 61.40 in place since 04 January 2017. In addition, the breakout has been accompanied by a relative high volume versus its previous five day average volume.
The daily RSI oscillator remains bullish above its corresponding support at the 46% level. This observation suggests that medium-term upside momentum remains intact.
The intermediate resistance stands at 66.60 which is defined by the gapped down seen on January 2009.
The key medium-term support now rests at 57.60 which is defined by a multi-month range support in place since 02 February 2017 low and the 23.6% Fibonacci retracement
The relative strength analysis of Citigroup versus its sector benchmark, the Financials ETF (XLF) continues to advocate a potential outperformance of Citigroup against the Financials.

Key levels (1 to 3 months)

Intermediate support: 61.40

Pivot (key support): 57.60

Resistances: 66.60, 72.00 & 75.85/77.10

Next support: 47.84

Conclusion

In the last five trading days, the S&P 500 Financials as represented by its ETF (XLF) had started to outperform the benchmark S&P 500 where it recorded a gain of 1.27% versus a meagre return of 0.15% seen in the S&P 500. Thus, upside momentum has started to revive in the Financials (XLF) which is the leading sector since the post U.S. presidential election before it started to shed its outperformance against the S&P 500 from March 2017 due to a potential delay in President Trump’s proposed policies on financial deregulations and a flat yield curve seen in the U.S. Treasuries.

One particular stock to take note will be Citigroup (C) where relative strength analysis continues to advocate further outperformance against its Financials sector benchmark (XLF). Technical elements of the stock also continue to display positive signs of momentum. Thus, as long as the 57.60 pivotal support holds, Citigroup is likely to see a further up move to target the next resistances at 66.60 and 72.00.

On the other hand, failure to hold above 57.60 may invalidate the preferred bullish bias to open up scope for a corrective decline towards the next support at 47.84 (the previous swing high areas of 27 Apr/25 May 2016).

Charts are from eSignal

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this email, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index, a trading name of GAIN Capital Singapore Pte Ltd.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.