Share It

Share |

Tuesday, January 5, 2010

Citi (C) price-volume relation

The first two trading days for 2010 presented an interesting picture of Citi trading. After lingering between $3.20 - $3.40 for several weeks, the stock seem to making an attempt to head on north. Still on the daily graph the Moving Averages are not positively crossed so the upward movement is not confirmed. But...

Consider the following data:

Date Price Change Traded Volume
04.01.2010 + $0.10
+ $0.13

The simple rule is:

When there is an increase in the price supported by an increase in the traded volume, the price will continue to go higher.

Having this in mind it wouldn't be a surprise to see another increase of Citi stock price tomorrow. At least to the Moving Average which is at $3.66. The traded volume could give an idea if that increase will continue.

No comments: