CITIGROUP SPIKES AS EARNINGS BEAT ESTIMATES
Citigroup is currently trading at 70.48-higher by about 2.90% as compared to the previous closing. In Pre-market trading on Friday, the stock was trading higher by 3.32%. The stock has cut some of its earlier gains after the opening bell.
Before the opening bell today, Citigroup reported better-than-expected earnings for the third quarter as the company’s bottom line received a boost from lower corporate taxes. The earnings also got support from higher bond trading revenue and strength in its consumer banking business in Mexico.
The banking giant reported EPS of $1.73- above the market expectation of $1.69. Citigroup’s revenues for Q3 were $18.389B, which narrowly missed the market estimates of $18.501B.
Citigroup also said that its Q3 profit grew by 21.8% on YoY basis as its effective tax rate fell to 24% in the third quarter from 31% in the year-earlier period.
On the technical front, the RSI is currently at 46.04% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger bands but is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 70.30 TAKE PROFIT AT 71.80 STOP LOSS AT 69.50