Citigroup technical outlook

Left hand, the Citigroup daily chart, another financial which does not look good so far. We are trading in an ascending triangle heading for the new support low around 12/13. The fact that the momentum to the upside fades away after short covering rallies is not a good sign and the weekly chart has also a negative bias adding to the overall weak bias confirmed by the BKX (Bank Index). BAC’s negative profit warning has indicated further negative earnings momentum for banks in general and some of the overvalued banks like Wells Fargo and JPM have the benefit of the doubt as the ones generating more business due to the distrust for the weaker ones. But that created values in their stocks not reflecting the basic deep deterioration of the economy and deriving bad earnings momentum for all banks.

~ by behindthematrix on October 7, 2008.

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