Oct 9 (Reuters) - Citigroup shares have struggled since peaking this year in June, which was the stock's highest level since 2008. Recent price moves suggest they could be about to fall further, technical analysis shows.
Technical analysis uses past price moves on charts to help understand where a market might go next. Citi's daily charts show several measures of momentum pointing down. Momentum refers to the speed and strength of a price move.
That short-term gloom is now spreading to the longer-term picture. Analysts use weekly charts to filter out day-to-day price swings and get a clearer view of the bigger trend. Citi's weekly charts are turning more and more negative.
Last week, the shares broke below an ascending trendline drawn from their April 2025 low. An ascending trendline is a rising line that connects a series of low points on a chart. While a stock stays above it, the uptrend is considered intact. A break below it suggests buyers are losing control.
Momentum tools support that view. One of them is called Bollinger Bands. These are two lines drawn above and below a moving average, which is the stock's average price over a set period, updated each day. Citi's weekly bands are starting to slope lower, which can be a sign that downward momentum is building.
Another gauge is called Moving Average Convergence Divergence, or MACD. It compares two moving averages of different lengths to show whether buying or selling pressure is building or fading. A third is the Relative Strength Index, or RSI, which measures the speed and size of recent price changes on a scale of 0 to 100. On weekly charts, both indicators now point to bearish, or downward, momentum.
Citigroup closed at $128.07 on Thursday, according to LSEG data. Recently the stock has been testing what is known as structural support in the $124 to $125.50 area. Support is a price level where buyers have stepped in before to stop a decline, so it works like a floor.
If that floor gives way and the shares stay below it, that would be a strong sign that another leg lower has started. The decline could also accelerate.
On the way down, shares might pause at support around $119.75 to $120 and then around $106.50. Beyond that, they could fall to the $102 to $104 area. That area represented resistance in November 2025. Resistance is a ceiling where sellers have previously stopped a stock from rising. Once a stock climbs through an old ceiling, that level often becomes a new floor.
However, a rise above the $135 to $136 area, back above the broken trendline, would cancel out this bearish view.
Citigroup declined to comment for this story.
- Citigroup has been struggling since June highs
- A break below $124 to $125.50 support could target the $102 to $104 area
- A rise above $135 to $136 would cancel the bearish view
(Mapping the Market is a daily column written by Reuters journalists. The commentary is based on a technical analysis of financial charts, which helps assess the likelihood of future price moves but does not guarantee the outcome. The column does not constitute investment advice or trading recommendations. )
Christopher Romano is a Reuters market analyst. The views expressed are his own; Editing by Burton Frierson and David Gaffen
