Citigroup Inc. (C) has created a compelling message for traders in the most recent trading. That message has grown stronger as the technical chart setup has developed into a more composite picture for the stock. This is the breakdown as we see it. Many traders ask the question why technical charts should form the foundation of their trading strategy. For them, charts are too complicated, and quite often, unnecessary. But what could be worse than guessing? Technical charts take the guessing out of trading.
The 50 and 200 SMAs for C have created a marked trend which is now helping traders to make solid decisions regarding the stock. It’s a trend that is now unmistakable. Based on the trend levels presented by both indicators, the overall sentiment towards C is best described as bullish. This trend has created a unified opinion across the trading floor and it is clear that the overall outlook for the stock is now established as positive. But it’s not just the outlook that’s being affected for the stock. Thanks to the consolidated opinion on C, activity has also seen a pronounced trend. Under current sentiments the volume activity and subsequent trend has created a weak outlook from buyers and sellers. Sentiments have a tendency to either weaken or strengthen as other technical factors begin to influence overall outlook. It’s interesting to see how things are playing out for C. It is unsurprising in the case of C, that the current trend has created some indifference among traders regarding the stock. In terms of consistency, it is clear that both the 50 and 200 SMAs have done their job in bring traders the overall trend-picture currently being seen for C.
There is of course more to the tale than just what the SMAs have presented. For those added details, we can take a look at the Relative strength indicator (RSI) and Stochastic measures, both of which give deeper insights into the overall sentiment of buyers and sellers. SMAs will tell alert you to price direction, but when it comes to judging what buyers and sellers are doing, few indicators are better than RSI and the Stochastic. It as this level of technical data that a trader can determine whether a stock is currently overbought is oversold. The current picture for C is of course very telling based on these two additional measures. Based on current readings, C’s 14-day RSI is 49.89%. Taken on the standard scale of measurement for RSI, this suggests that C is neutral, suggesting that the stock is relatively stable in terms of price movement up or down. The stochastic reading offers another solid measure of whether the stock is either overbought, or oversold. In the case of C, Stochastic readings gathered over the last 30 days have created a score of 65.34%. This suggests C is neither overbought or oversold at prevailing levels.
Forming any judgment on C purely through the technicals outlined above, whilst not fatal, may cause some problems. This is because there are other technical factors that help paint the overall picture for the stock. By this point in the analysis of C, it is clear that other technical indicators are saying essentially the same things. Specifically the +1.67 has birthed a positive overall sentiment when measured over the previous 30 days or so of trading. Over the longer-term C has outperform the S&P 500 by 17.77. This has, unsurprisingly, created higher volatility levels when compared with similar stocks of the same grade and class. Historical volatility is no less consistent. The historical volatility picture for C is shown in the reading of 21.13%. C has clearly shown its full hand by the overall input of these technical indicators. But there is one final measure that when added to the already rich mix, shows in full color what C is doing. The indicator is the Average True Range, and based on the current 1.86 reading, C is certainly worth paying attention to.
C’s current position based on technical factors could certainly change; but whilst the current picture remains extant, traders should act in accordance with the sentiments shown.