Citi at Important Trend Line Support

Share price for Citigroup Inc. (NYSE:C) have been wilder than a roller coaster at the county fair.  Tomorrow is going to be an important day for shares of the company as the chart for Citigroup Inc. (NYSE:C) is at an important trend line support (see blue line in the chart below).  Investors will be hoping that the share price will bounce off the trend line and surge back up.  It is noteworthy that the stock shows a very wide price channel (noted by the blue trend line for the bottom and the purple trend line for the top), but it is loose and tough to put much weight on.  It is best to focus on the lower trend line to see if support holds for now.

An uptrend line has a positive slope and is formed by connecting two or more low points. The second low must be higher than the first for the line to have a positive slope. Uptrend lines act as support and indicate that net-demand (demand less supply) is increasing even as the price rises. A rising price combined with increasing demand is very bullish, and shows a strong determination on the part of the buyers. As long as prices remain above the trend line, the uptrend is considered solid and intact. A break below the uptrend line indicates that net-demand has weakened and a change in trend could be imminent.  (Source)

As volatile as the price for the stock is the volume.  With an average daily volume of 800M, this baby IS the S&P.  This continues to make it a story stock nearly everyday.  Good luck to Citigroup Inc. (NYSE:C) investors, which includes all of us in the U.S. since we own it through our government, and let’s hope the trend line provides much needed support.

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