C dominated by bears dragging the market lower throughout the day
Citigroup Inc. (C) Technical Analysis Report for Jul 07, 2020 | by Techniquant Editorial Team
C finished Tuesday at 50.32 losing $1.65 (-3.17%), significantly underperforming the S&P 500 (-1.08%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Monday's low at 51.19, the market confirmed its breakout through the prior session low after trading up to $1.10 below it intraday.
Daily Candlestick Chart (C as at Jul 07, 2020):
Tuesday's trading range has been $1.27 (2.48%), that's below the last trading month's daily average range of $2.33. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for C.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on May 11th, C lost -3.90% on the following trading day.
Prices are trading close to the key technical support level at 49.47 (S1). The stock closed back below the 100-day moving average at 50.65.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 52.56 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 49.47 where further sell stops might get activated. Further selling could move prices lower should the market test June's nearby low at 47.82.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Citigroup. Out of 60 times, C closed higher 63.33% 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 55.00% with an average market move of 0.55%.