Citigroup Chairman of the Board, CEO of Citibank N.A & 3 Directors were the insiders who bought Citigroup shares last month. The Chairman & the CEO bought 1 million shares each at $3.21 and $3.41 respectively. It is a good sign when insiders purchase their own company's shares because they know the company's business much better than any investors. This is also a good indication for investors to take long position of this stock.
Stock's Background
3 years historical high = $55.08
Current Price = $4.68
Note: The stock price is unlikely to go back to $55.08 because the fundamental of the company has changed. Citigroup is still losing money this year.
I am waiting for a right time and right price to buy this counter for long term investment. My plan:
Wait and see whether the stock price can hold above $4.26 and the 20D and 50D MA support trend in Sept. If the stock price continues to stay up after big Dow Jones & S&P500's correction, I will consider to buy at the price near $4.26 in Oct.
If the price breaks the $4.26 support level, my entry target is around $3.65. I need to make sure all the Technical Indicators do not show bearish convergence and the stock price is not on the down trend.
Citigroup broke 20D MA support line and close at $4.38 on Sept 25. Next immediate support at $4.26 (base on short term 61.8% Fibonacci Retracement) & 50D MA support at around $4.00.
Background:
I have a full time job but not from any financial institution. My objective of creating this blog is
to share what I have learnt and to improve my trading and investing skills.
Qualification:
Executive MBA, M.Sc(EE), B.Eng(EE), C.P.M.
Investing styles: Value Investing, Momentum Investing and Sector Investing.
Welcome for any comments and suggestions and I can be contacted through marubozu1688@gmail.com
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Citigroup broke 20D MA support line and close at $4.38 on Sept 25. Next immediate support at $4.26 (base on short term 61.8% Fibonacci Retracement) & 50D MA support at around $4.00.
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