C breaks back below 20-day moving average
Citigroup Inc. (C) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, C ended the week 5.27% higher at 44.13 after losing $0.87 (-1.93%) today on low volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday.
Daily Candlestick Chart (C as at May 22, 2020):
Friday's trading range has been $1.35 (3.02%), that's below the last trading month's daily average range of $1.89. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for C.
The share closed back below the 20-day moving average at 44.84. When this moving average was crossed below the last time on Tuesday, C actually gained 2.34% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 46.28 where further buy stops could get triggered. As prices are trading close to May's high at 46.47, upside momentum might speed up should Citigroup mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Citigroup. Out of 777 times, C closed higher 49.55% 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 56.11% with an average market move of 0.34%.