Bull & Bear: Citigroup Inc. (C)

Shares of Citigroup Inc. C are higher on the session by 0.53%, currently trading at $41.46. With the recent decline in shares, you have to wonder where they are heading next… Bulls: Bulls will note that Citigroup has begun to base sideways right in the key $41-42 support level. This level was large historical resistance in the past; this is the first major, long-term test of the level. Bulls will also note that Citigroup is trading well below the 20-day, 50-day, and 200-day moving averages, which should lend some technical short covering to the name around these levels. The stock is also technically very oversold. A bullish trader could June $41/43 call spread for a net credit of $0.85. Bears: Bears will note that all three major moving averages are now downward-trending; this will put continued and heavy pressure on shares during any bounce. Bears will also note that Citigroup is trading beneath several long-term technical uptrends; this indicates that shares are no longer under accumulation. A bearish trader could buy the July $40/37/35 put tree for a net debit of $0.42. Citigroup Inc. is a global diversified financial services holding company. Citigroup businesses provide consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2010, the company had approximately 200 million customer accounts and did business in more than 160 countries and jurisdictions.