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Citigroup Inc (NYSE:C) – May Be Rejected From $55 Levels

Citigroup Inc (NYSE:C) opened with a gap up and ended the session with a respectable gain of 1.52% after it reported the first quarter results and mostly beat the analysts’ expectation. As usual on a result day, the volume surged and reached 38 million, more than double the daily average of 16.5 million. Considering that the rally yesterday took the stock just 5% away from the 52-week high, the inability of the stock to register a new high for 2015 seems striking.

The street was expecting Citigroup Inc (NYSE:C) to report earnings of $1.39 per share on an adjusted revenue of $19.8 billion but the company reported earnings of $1.52 per share on an adjusted revenue of $19.8 billion. Against the last year’s EPS of $1.23, the GAAP earnings came at $1.51 per share this time, and GAAP revenue at $19.7 billion. On a y-o-y basis, a 7% drop was seen in the banking firm’s deposits, coming down to $900 billion. The bank’s allowance for loan losses was $14.6 billion at the end of the quarter with the cost of credit falling by 3% to $1.9 billion. The total loan amount at $621 billion saw a 7% decline at the end of the March quarter. A 2% decline was seen in the revenue of $8.7 billion of the Global Banking Consumer segment and a similar 2% decline was visible in the revenues of Citicorp too, at $17.9 billion.

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Technically, the stock price formed a Doji candlestick yesterday, suggesting indecision and not particularly a lot of strength. As evident from the chart attached, the price has just hit a trendline resistance and unless some very bullish news emerges right now, it looks unlikely that the stock will run above $55. The possibility of the stock trading in the range of $50-$55 looks very strong at the moment.

Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email ([email protected]) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).

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