• Chart of the Day: Citigroup, Inc. (C)

    by  • December 3, 2012 2:31 pm • Charts to Watch, Tony Venosa's Chart of the Day • 0 Comments

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

    Ticker:  Citigroup, Inc. (C)

    What I Am Looking At:

    • Financials/ Banks showing relative strength on a year-to-date basis
    • C up more than 30 percent year-to-date, strong performer
    • Shares recently peaked just slightly above the March high, which was the high for the year
    • Current pullback showing a bullish flag pattern on daily chart
    • 80-day moving average (purple line) and 38.2 percent retracement level from the July-October rally are just beneath current price which could offer support
    • During the past 2 weeks short interest has decreased nearly 38 percent and currently represents 1.2 percent of the float
    • Approximately 1 day to cover all short interest
    • Goldman Sachs Financial Services Conference this Wednesday, December 5th
    • Good amount of call activity (mostly bought-to-open) have been executed today at the 35-,36-, and 37-strike prices
    • A bounce from potential support and further strength could result in a delta hedging rally from these out of the money calls
    • Or if price continues to weaken we could see further pressure from a call unwind

    Conclusion:  Watch how shares behave around the 80-day moving average and also keep an eye on how price reacts to the $35, $36, and $37 levels if shares can back up to these levels.

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    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.


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