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