Is there something brewing at Citi ?

Today this comes in my mail:-

"Maybe Citi Doesn’t Suck So Much

It’s been a pretty rough couple of years for Citigroup. But a couple of the world’s biggest hedge fund managers seem to think Vikram and Co. have something going.


Paulson & Co. bought up a $1.2 billion stake in Citi during the third quarter, while Renaissance Technologies took a more modest $90 million slice. RenTech has been somewhat schizophrenic about Citi, selling off 21.5 million shares in the second quarter, only to rebuild its stake to—you guessed it—21.5 million shares last quarter."

I have been keeping an eye on Citi for a while now because it is one of the big boys that price has NOT gone up since March this year. So when the above comes in today, I take another look at its chart and this is what I find:-


The monthly chart shows the RSI has already gone into oversold area with prices now staying above the short term moving average. But there is no buy signal flashes yet.


The weekly chart is more promising and I am very thrilled with what I see. First I like the bullish divergence at the MACD and at the RSI. The MACD is getting close to its zero signal line and the RSI is also near its 50 signal line, any new buy signal near these areas would be more meaningful. Secondly , another exciting item is its ADX which has now gone below 20's which is confirming the lack of trend in this stock. But the Bollinger Band has been squeezing which is foretelling us there is going to be a monstrous move soon. Any weekly closing of above $5.52 should be a buy signal.



The daily chart almost resemble the weekly chart's. The Bollinger Band is also squeezing with ADX going below 20's. Prices are within the Bollinger Band, all these are confirming a lack of trend at this moment. But as mentioned at the weekly chart, this is usually the calm before the storm type of formation.

And now with the big boys buying in their shares, maybe you should start stay alert on this stock ?