C closes below its opening price unable to hold early session gains
Citigroup Inc. (C) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, C finished the week -12.04% lower at 44.86 after losing $0.67 (-1.47%) today, slightly underperforming the S&P 500 (-1.12%). Trading $0.44 higher after the open, Citigroup was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 45.01, the stock confirmed its breakout through the prior session low after trading up to $0.25 below it intraday.
Daily Candlestick Chart (C as at Sep 18, 2020):
Friday's trading range has been $1.20 (2.64%), that's slightly below the last trading month's daily average range of $1.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for C.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on Monday, C lost -6.94% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 44.62 (S1). After having been unable to move lower than 45.01 in the previous session, the market found buyers again around the same price level today at 44.76.
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 although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 49.95.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 44.62 where further sell stops could get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Citigroup. Out of 271 times, C closed higher 54.24% 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 56.09% with an average market move of 0.69%.