C

Citigroup is going up nicely. Updating the chart it could go ( relatively ) much higher.

c jan 2011 1 c 2011 2

It was first recommended at $3.95 or so on the “too big to fail” approach without much regard to the EW structure. Applying that approach now, we must confess not being entirely sure if the drop from $60 or so to ground level  was a wave  (that is part of a correction that had started some ten years earlier, see previous blog for chart), or a first wave done (which would beg the question, how much lower can you really go from ground level? ) Nor is it clear from the short term chart whether or not the upwards move over the past 2 years or so , is itself a correction(a-b-) or a real new beginning. Fortunately, for the time being at least, it does not matter! The stock should trade back to the 4th wave of previous degree at about $8, and at one higher degree at $22 or so. So if you feel lucky let your 30% profit , so far, run. However do keep a running stop! Going through $5 allows more buyers to enter the market , so perhaps that will help.