C finds buyers again around 44.62
Citigroup Inc. (C) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
C finished Wednesday at 46.02 gaining $1.21 (2.7%) on high volume, strongly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (C as at Sep 16, 2020):
Wednesday's trading range has been $2.14 (4.73%), that's above the last trading month's daily average range of $1.63. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for C.
Prices are trading close to the key technical resistance level at 47.56 (R1). After having been unable to move lower than 44.67 in the prior session, the share found buyers again around the same price level today at 44.62. The last time this happened on September 11th, C actually lost -5.59% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 50.42.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Citigroup. Out of 124 times, C closed higher 54.84% of the time on the next trading day after the market condition occurred.