Sell signal in its 6th week, still unconfirmed
Citigroup drops 5.5% as the decline resumes after a four-week rally
Our view last week
Citigroup stock climbs for a fourth straight week, up 3.2% this time, with 84% of volume on the buy side: price is back knocking on the daily Kumo ceiling and the recent highs. Underneath, though, money flow keeps sliding and weekly ADX is losing steam - the rally is running on shakier legs than it looks. Price closed above the first stop level (SL1) flagged in last week's card (139.09 area): for anyone following that level the trade is closed.
This week's summary
Citigroup's sell signal reaches its 6th week without confirmation: over the three observation weeks price had recovered above the first stop level flagged in the previous card, closing that trade for anyone following it. This week the trend flips again: after 4 straight weeks of gains, the stock drops 5.5% and the decline resumes with lower lows, sellers back in charge on the daily chart. Our model treats the opening as high risk and calls for a wait-and-see stance.
IQS Phase
54
ordinary
Signal Strength
43
decline starting to make lower lows
Sizing
REDUCED
Ranking
#35 / 93
US stocks
Trade P&L %
-1.77%
from signal to date, no stop loss
Rank position
ranks 35th among the 93 sell signals for US stocks in our ranking, with a signal strength of 43 out of 100.
Sector context
SectorFinancials
Benchmark ETFXLF
Sector regimein positive regime
Performanceweekly -1.17% · monthly +2.55%
C belongs to the financials sector (reference ETF XLF). The sector is classified in positive regime according to our weekly reading.
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