Shares of Citigroup are under pressure again this morning. Yesterday the stock took a damaging hit following negative regulatory news: https://seekingalpha.com/news/3613808-citigroup-to-get-regulatory-reprimand-shares-sink-5?mod=mw_quote_news. C finished the day with a 5.6% loss on triple average volume. This steep decline drove the stock below the August and September lows, a nasty reversal from last week’s failed breakout. Today C is taking out the June lows as overhead pressure intensifies. With shares far from oversold, a deep pullback may be on the way.
We expect further downside for C. With the $49-$48 area blown out there is very little support nearby. Initial target is the May low($38.75) although a re test of the March lows would not be a surprise.