It's only fitting to start off our review of big-name technicals by looking at the stock that's historically been the highest-volume stock on the entire NYSE by a significant margin -- I'm talking about Citigroup (C).
I say "historically" because Citigroup's 1-for-10 reverse split this week took the stock's price from the mid-single digits to the mid-doubles. That sort of shift always has a material effect on trading volume numbers, something that analysts will need to keep an eye on as they crunch volume-driven metrics in the coming days and weeks.
For all intents and purposes, stock splits don't have a fundamental impact on a company; that is to say that Citi hasn't changed by modifying the number of "pieces of the pie." That said, splits can have a technical and psychological impact on a stock given that they impact things like liquidity, investors' views of "cheap" or "expensive," and access to the stock by institutions that operate under strict mandates on share price and trading volume.Right now, Citigroup is consolidating, a state that the big bank has been in since the beginning of March. That sort of consolidation occurs when a stock's buyers and sellers are trying to compete for domination of its share price - with well-defined support and resistance, traders should be on the lookout for breaches of either level. That's a trading opportunity away from the consolidation area. At the same time, investors should be looking for bounces off of support to pick up additional shares of Citi. Citigroup shows up on a recent list of 10 Stocks Under $10 With Upside as well as 6 Financial Stocks to Sell.
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