C closes lower for the 2nd day in a row
Citigroup Inc. (C) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, C ended the week 0.13% higher at 78.79 after losing $0.21 (-0.27%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (C as at Feb 14, 2020):
Friday's trading range has been $0.64 (0.81%), that's far below the last trading month's daily average range of $1.20. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for C.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 79.00 (R1), Citigroup closed below it after spiking up to 79.09 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 78.62 in the previous session, the share found buyers again around the same price level today at 78.45. The last time this happened on Monday, C gained 0.78% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 78.05 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Citigroup. Out of 473 times, C closed higher 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.29% with an average market move of 0.69%.