Blog description

My photo
A place for friends to gather and view stock market charts, discuss technical analysis and market outlook. What is your Principal Asset? How can it be developed? Each and all should do their own due dilligence and homework before investing. And by no means should you use anything I say or show here as a sole basis to buy or sell securities as everything is for educational experience only.

Tuesday, March 11, 2008

Citigroup to $14.25

How low will Citi go? The chart below illustrates a multi-year low for the big C and unfortunately my Ameritrade charting will not allow us to view farther back than 2003. If you take a look at thinkorswim you will find the next stop down to be a one week stint around $14.25 fifteen years ago. Can it blow through $14.25 all the way to $0.00? Sure, but where will it be 3-4 years from now? The first resistance on the way back up will be $24.50. No need to be in a hurry here until the 50 month EMA -$46.07 starts getting close to the 200 month EMA - $29.62.
Anyway, it may be time to start nibbling: financials - C, GS, BAC; home builders -TOL, KBH; and retailers -BBY, HD.
The tell for the all clear to buy will be increased volume as the big money starts moving in. Nibble, because we may see a bounce, but things are still heading SouthEast over this bear market.

Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)