Citigroup (NYSE:) doesn’t have much to brag about from a long-term perspective as it remains 80% off its high back in 2006. Yet Citi can brag about the gains it achieved from its 2009 lows – it’s up several hundred percent.
Below looks at Citi over the past 24 years, which is why I think a critically important resistance test is in play.
A few months ago, Citi faced a dual resistance test at (1), where enough buyers came forward and a breakout took place. Citi rallied nearly 20% in short order following the breakout at (1).
The rally over the past few months has Citi facing another resistance test at (2), which comes into play at $77. If it can find enough buyers and strength to take out this key resistance, it could attract a good deal of buyers as the price has waterfalled between $150 and $77. Is a reversal of this waterfall pattern about to take place? What Citi does at current levels will be highly important for it months from now.
If Citi can find enough buyers and strength to take out this key resistance zone, it could attract a good deal of buyers. Is Citi’s waterfall pattern about to revers? What Citi does at iits current levels will be highly important for months to come.