Citigroup (C) is scheduled to report its latest quarterly figures to shareholders and analysts on Friday morning before the start of trading. Let's check the position of the charts and indicators in light of all the drama across the banking industry in recent weeks.
In this daily bar chart of C, below, I see a mixed picture. Share prices are in a sideways trend following a decline. C trades below the flat 200-day moving average line and below the declining 50-day line.
The On-Balance-Volume (OBV) line has been weak since early March. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but crossed to the upside for a cover shorts buy signal.
In the weekly Japanese candlestick chart of C, below, I see a weaker picture than the one-year daily bar chart above. The shares trade in a long-term downtrend and below the weak 40-week moving average line.
The weekly OBV line has been in a downward path from May of 2021. The MACD oscillator is pointed lower and below the zero line.
In this daily Point and Figure chart of C, below, I can see an upside price target in the $56 area.
In this weekly Point and Figure chart of C, below, I can see a potential downside price target in the $33 area.
Bottom-line strategy: I have no special knowledge of what C will tell shareholders on Friday but I would tend to believe that their forward guidance will be most important as investors wonder about possible outflows, tighter net interest margins (NIMs) and perhaps increased loan-loss reserves and the like. I think the risks outweigh the potential rewards in this sector.
