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Shares of Citigroup are under pressure again this morning.  Yesterday the stock took a damaging hit following negative regulatory news: 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. 

No position.