Friday, November 19, 2010

Citigroup a Buy or Sell?

Technical Analysis:
Technically this stock is currently trading between point A and B - It is call Range Trading. Unless Citigroup can convincingly break the 1st resistance which is $4.5, then the stock have a high chances to go higher. Otherwise, this stock will trade between $3.6 and $4.5 range.

Both MACD and Stochastic do not show a buy signal yet. As per the Bollinger Band,  it is currently above the middle line which is slightly positive.

Fundamental Analysis:

The last four quarter earning are as follows:
4th Quarter 2009 = -0.33
1st Quarter 2010 = 0.15
2nd Quarter 2010 = 0.09
3rd Quarter 2010 = 0.07

There is nothing to shout about on the earning for Citigroup. Unless Citigroup can show substantial earning increase in the future quarters, the price between the range of A and B is about right.

My belief is Citigroup is a hold for me, both technically and fundamentally. I does not show any positive sign to buy at the moment. This stock have a chance that it will go down to touch the $3.6 level.
I think a good buy will be at the $3.6 level or below.

Good luck.

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