Citigroup near Key Resistance Area

Published on Friday, 30 July 2010 04:44 Written by Danny Miller

New York, July 30th (TradersHuddle.com) - Shares of Citigroup Inc. (NYSE:C) are trading very close to calculated resistance at $4.27 with the current price action closing at just $4.12 placing the stock near levels that make it difficult to buy.

Citigroup Inc. (NYSE:C) is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers around the world. Its services include investment banking, retail brokerage, corporate banking, and cash management products and services.

Citigroup's current stock range is defined by current calculated support defined at $3.85 and by the resistance level at $4.27, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Citigroup, as the stock is well above support, however, as the stock pulls back towards $3.85 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $4.27 then traders will get an opportunity to enter Citigroup stock by establishing a position as the stock moves to a higher range.