Technical Analysis of Financial Markets

Friday, December 08, 2006

Citigroup Inc. (C)

Citigroup surged almost 4% on heavy volume before closing at a gain of 2.3% on speculation that CFO Sallie Krawcheck is departing the bank. The spike in price action saw a breakout of a 2-month consolidation range with resistance at $50.95, which should now serve as support. OBV has yet to confirm the breakout; -perhaps indicating a possible pullback in price before smart money begins buying into management reorganisation news rather than speculation. Fibonacci extensions from the mid-July uptrend project price targets and resistance at $52.48, $54.44 and $60.08.

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