4 Trade Ideas for Citigroup: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Citigroup, $C, comes into the week pressing up to prior resistance. A break would clear the consolidation zone and establish a target to 59 on a Measured Move. The RSI is rising in the bullish zone with the MACD crossing up and positive. The chart shows a Golden Cross printed 2 weeks ago as well.

There is resistance at 52.60 and 54.25 then 56.25 and 57.75 before 60.50 and 61.50. Support lower comes at 51.75 and 49.75. Short interest is low at 1.5%. The stock pays a dividend with an annual yield of 3.90% and has traded ex-dividend since February 3rd. The company is expected to report earnings next on April 14th.

The March options chain has extreme open interest at the 50 strike followed by 52.50 and 47.50 on the put side. On the call side it is extreme at the 50 and 52.50 strikes. In the April chain it is biggest at the 50 put strike and spread from 50 to 57.50 on the call side. In the June chain open interest is large from 35 to 55 and biggest at the 50 strike on the put side. The call side is spread from 45 to 60 and biggest at the 55 strike.

Citigroup, Ticker: $C

Trade Idea 1: Buy the stock on a move over 52.60 with a stop at 49.75.

Trade Idea 2: Buy the stock on a move over 52.60 and add an April 50/47.50 Put Spread (52 cents) while selling the April 57.50 Call (37 cents).

Trade Idea 3: Buy the April/June 55 Call Calendar (81 cents) while selling the April 47.50 Put (49 cents).

Trade Idea 4: Buy the June 47.50/52.50/57.50 Call Spread Risk Reversal (84 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with February in the books, saw equity markets show some strength with a rebound from a pullback following Fed comments.

Elsewhere look for Gold to continue its short term rise while Crude Oil consolidates in a tight range. The US Dollar Index shifts into consolidation in its bounce while US Treasuries consolidate in a broad range. The Shanghai Composite looks to continue the move higher while Emerging Markets show hints of a continuation of the uptrend from the October low.

The Volatility Index looks to remain in the normal range and stable making the path easier for equity markets to the upside. Their charts are looking stronger, especially on the shorter timeframe. On the longer timeframe the IWM, the QQQ and SPY all remain in bull flags looking positive. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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