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Citigroup Rallies in a Corrective Structure


Citigroup (NYSE:C) advances on Thursday trading session, advancing 2.79% or $1.56 per share climbing at $54.79. The short-term picture reveals that the financial institution moves in the second leg of an incomplete corrective structural series.

Citigroup, in its hourly chart, shows the advancement of the wave B of Minor degree in green, which began on March low at $32.01 per share, in where the price found the support of the massive sell-off that started on mid-February that made it lose over 61%.

According to the alternation principle, considering that the first decline, corresponding to wave A of Minor degree, was volatile and extended, the current wave B in progress should continue moving in a narrow range. In the same way, wave B should require more time than the first one for its completion. In fact, wave A completed its decline in 64 days, while wave B started its advance 77 days ago.

Currently, Citigroup advances in its wave ((c)) of Minute degree labeled in black. Te five-wave path in progress began on May low at $38.77 a share. From the figure, we distinguish the price action advancing in its fifth wave of Minuette degree identified in blue.

On the other hand, considering that the price action moves near the upper line of the ascending channel, and the gap is unfilled, Citigroup might likely accelerate its upward momentum and fill the gap at $60 per share as a psychological resistance.

For the following trading sessions, we foresee that once the upward sequence completes, Citigroup should start a new bearish leg corresponding to wave C of Minor degree identified in green. According to the alternation principle applied in wave analysis, considering that the first massive sell-off was developed in an extended move, the next decline should be shorter than wave A.

In conclusion, for the following trading sessions, Citigroup could develop a limited upside that could advance until the area of $60 per share. This region corresponds to the gap unfilled and could represent a strong resistance for the advance of the price action. Concerning the expected subsequent decline, Citigroup could fall until March's low of $32.01 per share, which could represent an opportunity for further entries to the long side.

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Source: https://www.cryptorocket.com/news/citigroup-rallies-in-a-corrective-structure/
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