Citigroup Inc (NYSE: C) Declines on Heavy Volume Says Market Timer Frank Kollar

September 25, 2008 (FinancialWire) (By Frank Kollar)

Shares of Citigroup Inc (NYSE: C) lost over 5% on Wednesday, September 24 on news it may sell its Primerica insurance unit to private-equity firm J.C. Flowers & Co. and Alabama insurer Protective Life Corp.

The selloff was on heavy volume and was followed after-hours by another 2% loss by the time this article was written.

Citigroup has lost a great deal of share value over the past months, as have most companies in this sector, but Citigroup sits just above important support that needs to hold or this stock could decline considerably further in coming days and weeks.

Last week’s selloff took shares of Citigroup down to $13.00 a share. On Friday, Citigroup gapped up at the open and since, shares have held above this gap. Though gaps are typically filled, traders do not want this gap to be broken on the downside. The gaps base is at $16.65. A close decisively below this price would likely result in declines to the lows of last week, at the $13.00 level.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

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