- December 14, 2010
- Posted by: Ramki Ramakrishnan
- Category: US Stocks outlook
Citigroup stock has been consolidating for over a year, and we have finally got the break to the upside. The outlook for Citi remains positive over the next several months, and I see it eventually reaching $6.38 from the current price of $4.81, thats a cool 30% higher!
You will see from the notations of the chart of Citigroup here that the consolidation has taken the form of a classical triangle, usually deemed as a continuation pattern. A breakout on the upside confirms that the move will be in that direction. But as an Elliott Wave practitioner, one can also say that we have embarked on a new set of zig-zag moves, and the objective could be (conservatively) 61.8% of the first zig-zag. Coincidentally, this target is the same as what a classical approach would throw up. Hence, we gain in confidence with the analysis, and I recommend buying dips.