Citi shares have been on the rise since last month, gapping higher earlier on and signaling that buyers are pushing higher. However, price is stalling at an area of interest and may be in for a move back towards the bottom of its range around $48/share.
Stochastic is moving down from the overbought area, suggesting a return in selling pressure. Similarly, RSI is pointing south so sellers might pick up steam and spur a decline.
On the other hand, the 100 SMA is above the 200 SMA for now, which means that buyers still have a shot at keeping the uptrend intact. Citi shares have been forming higher lows anyway, indicating that bulls are gaining traction.
Citi Shares Forecast
A selloff from the current levels at the $54/share resistance mark could lead to a drop until the $48/share level or at least until the $50/share psychological support. The prospect of Fed tightening in December has kept stock gains limited, as higher borrowing costs could weigh on lending and investment, thereby keeping consumer and business spending in check.
However, if Citi shares are able to sustain the bullish momentum, a move towards the previous highs around $60/share could take place. The company recently won the top honor in Global Finance Magazine’s Best Overall Global Digital Bank for 2015, adding positive prospects for investors.
In leadership news, Paul Simpkin is taking on a new role as Citigroup’s chairman of EMEA leverage finance while Richard Basham will take over Simpkin’s responsibilities as head of EMEA leverage finance. Both are veterans in the company, having been with the bank for over 25 years.
Technical indicators settings:
- 100 SMA and 200 SMA
- Stochastic (8, 3, 3)
- RSI (14)
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