C finds buyers around 49.65 for the third day in a row
Citigroup Inc. (C) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, C ended the month 6.66% higher at 51.10 after gaining $0.81 (1.61%) today, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 50.92, the stock confirmed its breakout through the prior session high after trading up to $0.63 above it intraday.
Daily Candlestick Chart (C as at Jun 30, 2020):
Tuesday's trading range has been $1.90 (3.81%), that's below the last trading month's daily average range of $2.50. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for C. Prices continued to consolidate within a tight trading range between 49.47 and 52.79 where it has been caught now for the whole last trading week.
In spite of a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 25th, C actually lost -5.88% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 49.47 (S1). The share found buyers again today around 49.65 for the third trading day in a row after having found demand at 49.61 in the prior session and at 49.47 two days ago.
Citigroup 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 nearby swing high at 52.79 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 49.47 where further sell stops could get activated. As prices are trading close to June's low at 47.82, downside momentum might accelerate should C mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Citigroup. Out of 114 times, C closed higher 55.26% 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 55.26% with an average market move of 0.50%.