Citigroup's (C) - Get Report powerful post-election surge has driven the stock into extremely overbought territory. With a significant supply zone in play this month as upside momentum has eased over the last two weeks, a healthy pullback may be ahead.

Citigroup, a holding in Jim Cramer's Action Alerts PLUS portfolio, remains in a very tight three-week range but the increasing overhead pressure from the $61 area may soon expand the action to the downside.

Citi's post-election surge drove the stock over 27% higher. In early December shares, currently at around $59, reached heavy resistance near the 2015 high and have been moving sideways since. A fade from this level would allow the stock to work off some of its overbought condition while testing very solid underlying support. For patient investors a low-risk entry opportunity will be the result.

The initial leg of Citigroup's November ramp stalled just below $57. Once this area was cleared earlier this month the second leg was underway. This level, which marks this November peak near $56.85, is part of a very solid support zone.

Also here is the one-third retracement of the entire election rally. A re-test of this zone should be viewed as a low-risk buy. If Citigroup fails to regain its footing here, and drops below the December low ($55.90), a deeper pullback is likely on the way.

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Long C