Citigroup Could Hit $50

by Sam Collins | August 26, 2011 2:00 am

Citigroup (NYSE:C[1]) — This diversified financial services company provides a wide range of products to retail and corporate clients in more than 100 countries. In Q2, regional banking revenues hit all-time highs at $8.2 billion, generating profits of $41.61 billion, and total loans grew by 3.4%.

S&P believes that Citigroup made “significant progress in improving credit quality,” and they target the stock at $50 within 12 months.

Technically, Citigroup appears to have experienced a selling climax. A buy signal from an oversold stochastic indicator is a positive, and several days ago, a buy signal was triggered from our proprietary indicator, the Collins-Bollinger Reversal.

But buying C stock is still high risk and only for bottom fishers. A rebound should take Citigroup back to its 50-day moving average at above $36. Longer term, the target is north of $50.

• See Sam Collins’ Daily Market Outlook: 2 Safe, High-Yielding ETFs to Buy Now[2]
• See Serge Berger’s Daily Market Outlook: Stay Out of the Path of Bernanke and Irene[3]

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Source URL: https://investorplace.com/2011/08/trade-of-the-day-citigroup-nyse-c-2/

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