Citigroup Inc. (C) is finally looking stronger on the charts. At the end of August the charts looked better and I wrote that "If you are already long C you can hold but I would raise stop protection to $68. If C can rally to $74 I will be impressed as this should open the way to further gains. $80 and $91 are my price targets if prices do not hit a bump in the road." Prices finally rallied to $74 this week and a more bullish outlook can be considered.
Let's check out some updated charts of this stock discussed by Jim Cramer Thursday night on Mad Money.
In the daily bar chart, below, we can see that Action Alerts PLUS holding C has rallied above the highs of April through August. C is above the 200-day moving average line and rising 50-day line. The 50-day average is close to moving above the 200-day line for a potential bullish golden cross.
The daily On-Balance-Volume (OBV) line has turned up again and is close to a new high. A rising OBV line tells us that buyers are being more aggressive. The Moving Average Convergence Divergence (MACD) is signaling a new buy signal as it turns from the zero line.
In the weekly bar chart of C, below, we can see that prices are likely to make a weekly close above the 40-week average line today. The weekly OBV line has been rising the past three months and the MACD oscillator is close to crossing above the zero line.
In this Point and Figure chart of C, below, we can see the breakout at $74 and a potential upside price target of $91 now.
Bottom-line strategy: The price of C has broken out on the upside from a six-month base pattern. There is chart resistance in the $76-$80 area that is likely to slow the advance. Look for C to grind higher. Raise sell stops to $69 now.
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Action Alerts PLUS, which Jim Cramer manages as a charitable trust, is long C.