Looking at the technical picture of the Citigroup Inc. stock (NYSE: C), we notice that the share price has been declining from around the beginning of June, while trading below a short-term tentative downside resistance line taken from the high of June 5th. On the other hand, the stock continues to balance above a short-term tentative upside support line taken from the low of May 14th. Given that C is stuck between those two lines, we will take a neutral stance for now and wait for a clear break through one of them, before examining a possible next directional move.
A break through the aforementioned downside line may give a bit of hope for new investors. More of them might join in if the share price rises above the high of June 19th, at 54.06. If such a move occurs, C could clear the way for itself towards the next potential resistance area, at 56.39, marked by the high of June 16th. The stock may get a hold-up around there, or even correct a bit lower. However, if the price remains above the previously-discussed upside line, new investors could take it as a good sign and jump into the action. The stock could accelerate once again, possibly overcoming the 56.39 obstacle and targeting the next resistance area, at 60.20, marked by the high of June 9th.
Both of our oscillators on the 4-hour chart, the RSI and the MACD, are on the flat side. The RSI sits at 50 and the MACD continues to hug the zero line. Both indicators support our stance of staying neutral, for now.
Alternatively, if the aforementioned upside line breaks and C slides below the 51.52 hurdle, marked by the current lowest point of this week, this will not only open the door for a new lower low, but may also push the stock below all of its EMAs on the 4-hour chart. The share price may then slide to the 49.74 obstacle, a break of which may even open the way for testing the next support area between the 47.59 and 48.20 levels, which mark the lows of May 29th and June 11th respectively. C could stall there for a bit, however, if there are still no buyers in sight, a further decline might bring the price to the 46.03 level, marked by the low of May 26th.
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