• Chart of the Day: Citigroup (C)

    by  • February 12, 2013 10:40 am • Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Citigroup (C) which operates as a diversified financial services holding company, provides a range of financial products and services to consumers, corporations, governments, and institutions worldwide.

    Ticker:  Citigroup (C)

    Strategy:  Long Trade

    What I Am Looking At:

    • SPDR S&P Bank ETF (KBE) showing excellent relative strength, up over 10 percent year-to-date
    • C also displaying solid strength, up nearly 11 percent year-to-date
    • Chart showing a breakout of an ascending triangle breakout pattern within a larger uptrending channel
    • Potential upside targets, $45.60 based on height of ascending triangle + breakout level), $49.22 is double the 52-week low, and the $50 level is roughly equal to the highs of 2009-2011
    • C attending Credit Suisse Financial Services Forum today, 2/12/13
    • Huge February put open interest resides at the 41- and 42-strikes, possible unwinding of these bearish bets could be fueling the strength for shares today
    • Peak call open interest for the February series resides at the 44-strike which could pose as a potential roadblock for shares in the near-term
    • One caveat is short interest has dropped to the lower end of the range for the past two years and represents just over 1 percent of the float, which has indicated tops in the recent past

    Trigger:  Breakout of ascending triangle or wait for possible backtest

     

     



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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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