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Fan Yang

Citigroup (C) Plunges; But Look for Support Around 70

Citigroup $C among most banks fell today. But the drop was more pronounced in C than say $JPM, $MS, and $GS. Still, I think we should limit the bearish outlook and anticipate support in the 68-70 area.

Citigroup (C) Daily Chart

(click to enlarge)

- The daily chart shows a bullish market that began in 2016. In fact, price was as low as 34.50 in early 2016. 
- Now looking at the daily chart, the current sell-off will see support if price retreats to the 68-70 area. 
- Here there is a rising trendline.
- Also, price would be around the top of a previous consolidation area, which can turn into support if the overall trend is still bullish.
- Furthermore, in a bullish market, the RSI should hold above 40 for the most part, so if the RSI dips to 40, we should anticipate a turnaround. 
- A break below 68 however would be concerning for the bullish view. If not bearish, a break below 68 would at least signal a long period of sideways consolidation.