It seems I have spent so much time focusing on a lot of really cheap and speculative stocks here at BestOnlineTrades that I haven’t been able to see the forest for the trees. Well I saw the whole forest today and Citigroup jumped right out at me.
Citigroup looks like a really good setup to me right now. Even though it has already rallied the last few weeks we have closed on August 20th right at the previous resistance line. The volume comparison between the two swings noted by the red arrows shows a decline of about 13%. That may be a sign that we get a minor pull back tomorrow, but I think Citigroup is going to bust out topside from this 4.50 resistance level and head on towards the 6 to 6.50 range perhaps during the next few weeks.
Citigroup is no cheap penny stock. We are talking massive liquidity and billions in buying power and a world class world wide company.
I do not have a clue as to how their actual business operations are going right now or what they are doing to solidify their business, but honestly I do not care. The only thing I care about right now is that I can clearly see that Citigroup in the month of August had what I consider to be absolutely BOMBSHELL upside volume. Some major heavy hitters have piled into this stock and the train looks like it wants to leave the station soon.
I don’t know who it was that was buying during that time frame (probably Warren Buffett and a few other billionaires? and maybe some big pension funds too) but I do know that it shows very clear bullish accumulation and sticks out like sore thumb, or perhaps I should say healthy thumb 🙂 .
I am a bit late in covering Citigroup because the real best entry was yesterday or even the day before. But if Citigroup can get above and hold 4.51 and not break back down below the dotted horizontal resistance line, then it looks like clear sailing to me to 6 and change.
And the move to that range may come faster than some expect because I see very little resistance on the left side of the chart up to the 6 and change area.
If it pulls back tomorrow and then is able to hold uptrend line support over the next few trading days, it is ripe for a continuation breakout in my opinion.
As my father sometimes says about the large cap stocks, “There are billions of brains at work making sure their business gets fixed and pushes prices higher”. That appears to be the case now, and those billions of brains want to push Citigroup higher during the next month.
I might have to start covering more big cap stocks just to get a better sense where all the big dogs are trading. Maybe I will start covering the Dow 30 stocks at some point or 1 Dow Stock a day for 30 days type project.
The Dow 30, although slow movers have huge numbers of stake holders and in some cases outstanding setups like the Citigroup setup right now.
But you just have to love the liquidity here. And the setup too 🙂 .