Yikes.
That escalated in a hurry.
As you know, the market sold off huge last Friday and did it again yesterday. It made a lot of people nervous and no stock was immune.
But there’s something interesting about quick crashes: they sometimes bounce right back.
A breakout after a crash can be a very good thing.
And a breakout on a stock that hasn’t reported any bad news is even more enticing.
We see that possibility in Citigroup.
Here’s the chart:
Despite the knee-jerk drop, the breakout level is still nicely in place. And, as you can see, the market is roaring back today.
If the bounce-back continues, a breakout above $65 on C could lead to a powerful move.
We’ll keep an eye on it.
Happy trading,
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
Nate’s Urgent State of the Market Briefing…
If you’re in the ProsperityPub Telegram, you probably saw this morning that Nate took over MY home office for his State-of-the-Market briefing…
But after yesterday’s chaos, I wanted to make sure he had the best setup to get this to you.
Catch the replay now to see his five big predictions for the market, his plans for the future, and how you can join HIM inside Tucci Trading HQ!
