Last Update: 5/16/2017
Earlier this morning I’ve decided to add more Calls @ 60.53 (closing price today is 60.21 as it did fade towards end of the day). I was actually hoping to see the gap stays open today, but my wish didn’t pan out. But I still like the overall picture here as Citi is now trading above my EMAs. For bullish momentum to continue, price needs to get back above 60.50ish, otherwise we may experience little bit more pullback to 59.50-59.00ish and I am okay with that. Let’s see how it plays out tomorrow and early next week. Now, I am holding my long-term calls (full positions) since 60.53 & 61.28.
I was impressed how resilient Citi (C) was as it held above the “Pivot” level all throughout last week, while the Financial Sector (XLF) has declined as much as -2.5% since the 5/4/17 highs. Even when Financial Sector (XLF) put in new low of the week on Friday, Citi put in new high of the week on Friday. So we can see that Citi group is showing relative strength compare to rest of the Financial stocks, which is a good sign for the buyers. “20EMA” is still rising while it has been acting as strong support last several weeks, so minor-term ‘benefit of the doubt’ goes to the buyers. I see 60.60ish as current support while 61.90ish as current resistance. Let’s see how it plays out in the next several days here. I am still holding my full call-positions since 60.53 & 61.28.
As I have tweeted out this morning, Citi is now printing new 52-week high as the buyers surge in as the stock is breaking out well-above the March 8th highs closing the day with 62.49 (+1.74%). Again we are seeing relative strength on Citi (C) vs the rest of the Financials (XLF). With the “Volume Spike” today closing above the 62ish resistance, Citi is now breaking out of the consolidation (last four months) pattern, or you could say that the uptrend is resuming after four months of rest. I am open minded to a possible pullback to retest 61-62ish pivot as a new support, but it’s also possible we continue to grind higher; either way, I am very pleased with price-action last few weeks here. I think Citi is eyeing on 65-67 as I am still holding my full call-positions since 60.53 & 61.28.
Past Journals: C (Part 1) | SPY AAPL