Citigroup, Inc. (C) is a financial services holding company providing consumers, corporations, governments and institutions with services including consumer banking and credit, corporate and investment banking, securities brokerage, trading and security services and wealth management. The stock is currently trading around $56.50 at the upper end of its 52 week range of $46.60-$57.64. The stock has been outperforming the market this year rallying 4.18% year to date. Citigroup is scheduled to report earnings before the opening bell today, and the stock is bullish today rising by $0.59 or 1.06% on the session ahead of the close.

Over the past 12 quarters C has rallied on earnings day 7 times with an average move of 3.06%. The stock appears bullish on a chart going into the release having traded above or in the Ichimoku Cloud for the past few months since early April on the daily bars. Over the past 12 quarters C has rallied from earnings to the nearest options expiration 7 times with an average move of 2.97%. The stock looks as if it could continue today’s trend and rip to the upside in today’s session. Investors are looking to see how the bank’s trading business has faired with weak activity. Trading in FICC (fixed income, currencies and commodities) was hugely affected. Due to low interest rates, no growth in Citigroup’s net interest revenue is expected. However, increased M&A activity may increase revenue for the investment banking sector.

The options market is currently implying a move of around $1.35 or 2.4% in C by this Friday’s close giving us targets of $57.85 and $55.15.

Andrew Keene

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