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Citigroup (C) Signaling More Bearish Correction

Citigroup found support at 47.10 in August, formed a price bottom, and has rallied to almost 57 in November. However, in the past couple of weeks, price action has stalled the rally, and is signaling more bearish correction.

Citigroup Daily Chart 11/21

(click to enlarge)

Looking at the daily chart we can see that a second attempt to push towards 57 failed and price held below 56, which was below the previous high. Also, similar to the price action of the previous high, the current one is showing a bearish engulfing candle. This price action combined with the fact that the general mode of the market is consolidation, signals further bearish correction.

To the downside, the previous low was in the 52.20-52.75 area, which represents a key support area. A break below 52.20 might open up the 50 handle and possibly even the 47.10 low. 

In the short-term, I would say that there is a good chance for a test of the 52.20-52.75 area. Then, we'll have to see if price can pop 52.20 to extend the current, short-term bearish correction within the medium-term sideways consolidation.