Can Citigroup Become A Leader?

The large-cap banks have started 2023 off on a strong note, albeit an obviously small sample. Looking at the WEEKLY chart of the XLF one would see a bullish inverse head and shoulders formation with a potential entry point above 36 in a pattern that started last May. A break above 36 would carry a measured move to 42 near highs made last year in January. Banks all over the world are acting well. HSBC is honing in on a 33.43 double bottom trigger and the UK bank is up 5% this week heading into Thursday. Japanese banks have witnessed some breathtaking moves with MUFG up almost a double from lows made in October, as it relishes in a 10 of 12 week winning streak and up another 8% this week so far. Financial action here at home remains bifurcated with JPM, which we will speak of later in this note, assuming a leadership role. Below is the chart of C which spent Q4 ’22 trading between the round 40-50 numbers and is up against a familiar foe at its 200-day SMA. Above 48 and this could deposit some capital gains, pun intended. A dividend yield of over 4% is attractive as well. Wait for PRICE confirmation first.

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