Despite the recent bullish momentum in equity markets in general, Citigroup shares have remained relatively flat over the last few weeks, and closed Friday’s US trading session at $29.71 having traded in a narrow range for much of the day. The price is now consolidating into a pennant formation on the daily chart, with the Hawkeye pivots once again defining the congestion area, with both pivot highs and pivot lows in much the same way as in early August, which duly saw the stock break out from a narrow trading range.
Despite the flattening of the Hawkeye trend dots on the daily chart, the three day trend continues to remain firmly bullish supported by strongly bullish volume, and a bright green Heatmap, all suggesting a breakout to the upside is imminent. The price action in the current area is also significant with a series of higher lows over the last few days, suggesting that we should see the stock break higher in due course. With the strong platform of support in the $28 price area, this should provide a springboard for a move higher for the stock in due course with a test of the resistance in the $32.50 region now looking likely as volumes increase following the end of the summer holiday period.
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