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Citigrouplong

Big Citibank Opportunity Citibank Opportunity - NYSE:C Company Market Cap: $82.2 billion Share Price Today: $42.68 Dividend: 0.53c per quarter (Annual Dividend of c.$2.06) Annual Dividend Yield: 4.82% Next Earnings Report: Friday 13th October 2023 Citibank (Citigroup) is the 20th largest bank in the world & a member of Global Systemically Important Financial Institutions (G-SIFIs) meaning it has stricter prudential regulation such as higher capital requirements and extra surcharges and more stringent stress tests. under the scheme deposits can be 100% guaranteed in the event of a crisis, which is not the case for smaller banks that are not considered systemically important. This additional security can add weight to a longer term hold for Citibank combined with a good 4.82% dividend yield. Citibank has recently been in the headlines with negative news for completing a management re-org with substantial lay-offs. Whilst the news is interpreted as negative, the chart appears to reaching a point of exhaustion after 31 months of downward price pressure and a roughly 50% reduction in price from $81 down to $42. We may be forming a 3rd higher price cluster or price launch pad here at $42. Earnings release is in a 4 and half weeks on 13thOctober and after 13 quarters of positive earnings the trend is green. Its worth noting that upon earnings release, the price can capitulate or ascend aggressively (historically this has been the way), this is why it is important to be placing bids or positions well in advance of the release (now) and on the day of the release we should be nimble and on our toes to capitalize or reduce risk with stop losses. Obviously for long term position players this is not all that important, we have our long term target and stop loss on the chart. There is a long term trade opportunity with a stop loss at BASE 2 at $34.37. As you can see the trade has a Risk/Reward of 4:1. People who want to play it even safer could wait for a bounce off BASE 2 but for me a retracement this low could mean lower price momentum and a break of the RSI resistance. This is why I am inclined to take a position now off this base well in advance of the earnings release. This is not my typical style of trade however I could not pass up the chart given the mid-term 31 month 50% reduction and exhaustion in price combined with the higher bases on the longer term trajectory, and to be honest the negative news really got me the contrarian in me rustled. If you look hard enough you can see a potential long term ascending triangle forming out into the 5 year time horizon. As a cherry to the trade, the dividend yield is considerably high at 4.82% for a systemically important institution – to big to fail. In Summary - Citigroup is one of the top 20 banks in the world and is considered systemically important. - Citigroup share price has been declining 31 months with an approx. 50% reduction in price. - Three Price Bases establishing higher lows are reinforced by a rising RSI support line. - To fully take advantage of the earnings release on 13th October 2023 positions need to be placed now as the stock is extremely volatile on the day of release. - If the RSI support line fails to hold this could be a warning signal of a break down into STRONG SUPPORT ZONE (Red). - The dividend yield is considerably high at 4.82% for a systemically important institution offering a little incentive for a longer term hold.
Editors' picks
NYSE:CLong
by PukaCharts
21
C Golden Cross and similar price action to 2016/7Citi (C) has just made a Golden Cross (50d SMA crossing 200d SMA). The crosses in Sep 12 and Sep 16 were followed by 75%+ increases in price, so this is primarily a Golden Cross trade. The price/action into the Sep 16 GC is very similar to that from Jan 18. Also the bullish consolidation into earnings, followed by the pullback on account of the macro market and going ex-div May 3, means we can hope for a retouch of the 200SMA and enter at 65.70. The stop is placed at 60, the consolidation low, and a modest 36% target of 90 gives us 4.26:1 trade.
NYSE:CLong
by adatherton
Cash money, but just how much?For those following the Financial Sector two big dates are coming up fast for Citigroup ($C): The 26th of September next week, when the Fed decides rate raising (decreasing/no hike) and mid October when $C and other banks report earnings. The Sept 21 - $72 strike was just too tempting at $0.20/contract. Now that Citigroup, $XLF and the market in general is heading north, should gains be cut and collected today, tomorrow or are we gliding to the weekend on the wings of euphoria? $C beaten down MACD converged bullish, and the buy rumor sell news still has about 5 more days before expiration (unlike the Sept 21 contracts). The resistance at the $71.5 strike seems to be the only remaining obstacle before a short-term run on $73. As always, do your own due diligence. -Bayarizard
NYSE:CLong
by Arizard
Earnings season for the US banking sector is openingEarnings season for the US banking sector is turning into an active phase tomorrow. Two largest banks - JPMorgan and CitiGroup – will publish their financial statements for the second quarter. This will happen on Friday July 13, 2018 before the market open. Our expectations for the stock market from the current earnings season are quite optimistic, and as for the US banking sector, they are doubly optimistic. Let's start with the fact that recently the financial results of corporation act as a catalyst for the growth of American stocks. Here are just a few of the most typical examples: after the publication of the previous financial quarterly report, Apple shares went up by 5% in just one day and increased by 10% during the next week. On the shares of Facebook, everything was even more dynamic - shares during one (!) day grew by 10% (!). Shares of Amazon grew by 15% in just 3 (!) days. As for the banking sector in general and JPMorgan and CitiGroup in particular, despite the negative reaction of the markets to the quarterly results last time (the results, by the way, were better than the forecasts), we consider the existing conditions to be almost ideal for qualitative and quantitative growth of financial indicators of these banks. This is primarily about the growth of US interest rates, which allow banks to increase their margins and, accordingly, to increase earnings. In addition, Trump's tax reform and the general economic state of the US allow us to expect another excess of expert forecasts from JPMorgan and CitiGroup. We also note that both banks are characterized by an aggressive dividend policy. And if JPMorgan has long been yielding dividends at 2% per annum, CitiGroup has intensified only recently. But how they became much more active. The growth of dividend payments amounted to almost 200% (!). All this is a serious additional argument in favor of buying shares of JPMorgan and CitiGroup. Given that the financial results will be published tomorrow BEFORE the opening of the market, the decision on the trade must be taken now. Both shares are near the lower boundaries of their medium-term ranges. So, the prices for purchases are ideal. As for the growth prospects, in both cases we are talking about +/-10% returns (without the leverage). So, in our opinion, these trades (buy JPMorgan and CitiGroup shares) are extremely attractive from all positions, both technical and fundamental. Our recommendation is the purchase of shares of JPMorgan and CitiGroup today from the current prices. Because tomorrow it may be too late.
NYSE:JPMLong
by Trade24Fx
2