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 at resistance as it moves back up off the long slow climb from the 2009 low. It still needs to rise over $90.00 to retrace just 38.2% of the Great Financial Crisis drop.  It has an RSI deep in the bullish zone with a MACD positive and climbing. There is resistance at 132.50 then you need to go back to 2008 to find it at 139.75 and 147.75 then 169 and 183.50. Support lower is found at 129 and 124. Short interest is low at 1.7%. The stock pays a dividend with an annual yield of 1.82% and we’ll trade ex dividend May 4th.

The company is expected to report earnings next on the morning of July 14th before the open. The May options chain shows biggest open interest at the 120 strike on the put side then 130 and 115. On the call side it is largest at 140 and 150 above. In the June chain largest open interest is at 115 and 110 on the put side and at 120 on the call side. Finally in the July chain the largest open interest is that the 115 put strike and the 120 call strike.

Citigroup, Ticker: $C

Trade Idea 1: Buy the stock on a move over 132.50 with a stop at 127.50.

Trade Idea 2: Buy the stock on a move over 132.50 and add a May 130/125 Put Spread ($1.75) while selling the June 150 Call ($1.10).

Trade Idea 3: Buy the May/June 140 Call Calendar ($2.10) while selling the May 125 Put ($2.00) for a net debit of 10 cents.

Trade Idea 4: Buy the July 125/135/150 Call Spread Risk Reversal (20 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 April options expiration in the books and ceasefire giving traders more confidence it will hold up, saw equities show continued strength driving to new all-time highs.

Elsewhere, look for Gold to continue recovering from the pullback while Crude Oil transitions to freefall. The US Dollar Index looks to continue to drift lower in consolidation while US Treasuries continue to hold over 15 month support like nothing is happening. The Shanghai Composite looks to continue a short term uptrend while Emerging Markets push to new highs in their uptrend.

The Volatility Index looks to continue to improve, as it drops back to the normal zone removing all the pressure on equities. The charts of the SPY, the QQQ and the IWM are now looking extremely strong on the longer timeframe with 3 long positive weeks moving to new highs. On the shorter timeframe the SPY, the QQQ and the IWM also look very strong but are showing signs of overheated momentum and may need a pause. 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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