Citigroup Inc. - C - close: 4.64 change: +0.12

Stop Loss: 4.47
Target(s): 4.95, 5.40
Current Gain/Loss: + 0.0%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Financials were showing relative strength on Tuesday and the group helped keep the market afloat. The bounce is offering a tempting entry point in Citigroup. Shares had just tested support near its long-term trendline of higher lows (see weekly chart below) an this just happened to coincide with a dip near the $4.50 mark, which was prior resistance.

I am suggesting small positions now. Just because Citigroup is trading in the single digits does not mean we should buy too much of it. Trade carefully here. Citigroup has been rather volatile the last couple of weeks. We want to buy C now with a stop loss at $4.47. More aggressive traders could buy the call options. Our targets are $4.95 and higher.

Open Small Bullish Positions Now

Suggested Position: Buy Citigroup stock @ current levels

- or -

Buy the May $4.50 calls (C1121E4.5) current ask $0.32

Annotated chart:

Weekly chart:

Entry on March 9 at $ x.xx
Earnings Date 04/18/11 (unconfirmed)
Average Daily Volume: 460 million
Listed on March 8th, 2010