SIACharts Logo

Commentary >

Citigroup Inc. - (C) - March 27, 2024

SIA Charts’ Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing.

Since the beginning of November, the relative strength of senior, national US banks has been steadily improving, with several of the top names working their way back up the rankings, including Citigroup (C). Citigroup spent 2 ½ years stuck in the red zone of the SIA S&P 100 Index Report, from mid-2021 to the end of 2023. Over that time, the shares lost 24.2%, while the S&P 100 Index gained 16.8% over the same period.

As recently as September, Citigroup was close to rock bottom in the relative strength rankings but since November, its relative strength trend has turned positive. Near the end of last year, C climbed up out of the red zone and this year, it has been working its way upward within the Yellow Neutral Zone.

Yesterday, Citigroup climbed another 6 positions to 29th place, 3 spots away from a return to the green zone. Year to date, Citigroup is up 21.0%, while the S&P 100 Index is up 10.1%. Back in November, a long-term downtrend in Citigroup (C) shares bottomed out with a successful retest of support near $27.00. Late last year, it became clear that distribution was turning to accumulation as the shares snapped out of a downtrend and completed a bullish Falling Wedge pattern. Since then, the shares have been steadily recovering, establishing a new uptrend of higher lows and trending above their 10-week moving average.

This week, the shares are approaching $62.00 with previous highs suggesting next potential upside resistance may emerge in the $67.00 to $70.00 area. Initial support appears at the 10-week moving average near $56.65.

From the summer of 2021 to the fall of last year, Citigroup (C) shares were under pressure until they finally bottomed out in November in a Bear Trap (circled) where they broke down to a new low by one row and then reversed course back upward.

The shares have not looked back since then. In December, they snapped out of their downtrend and in January they staged their only correction of the current advance, a 3-row pullback. In February, the shares completed a Double Top breakout that also generated a Bullish Catapult signal that launched the shares into their current advance, which has carried C back up above $60.00 to its highest level in two years.

Citigroup is currently testing a previous high near $61.75. A close above there would confirm continuing accumulation. Should that occur, next potential resistance may appear near $72.35 where a horizontal count and the 2021 peak converge, followed by $76.75 based on a vertical count. Initial support appears near $55.90 based on a 3-box reversal.

With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, C is exhibiting short-term strength across the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.