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Citigroup shares rise sharply supported by Covid-19 vaccine news

By: Invezz
Citigroup shares rise sharply supported by Covid-19 vaccine news

Pharma company Moderna announced that it has a prospective vaccine which is 94.5% effective in preventing the COVID-19. Citigroup (NYSE: C) shares have advanced from $42 to $50.9 in less than five days and the current price stands around $50.

Fundamental analysis: Citigroup is a stable bank but the price could weaken again

Citigroup is an American multinational investment bank and financial services corporation headquartered in New York City. This is the third-largest banking institution in the United States with over 200 million customer accounts.

Citigroup shares have advanced this Monday above $50 and the technical picture implies that the price could advance even more in the upcoming days. Citigroup is a stable bank with a good position on the market and this bank will weather the COVID-related storms.

The US stock market hit a record this Monday thanks to news from pharma company Moderna saying its prospective vaccine was 94.5% effective in preventing the COVID-19. The stocks are also supported with signs of economic recovery in Asia and jump in oil prices.

“Today’s vaccine news should make investors more tolerant of the surging virus cases, permitting them to look through to the strong dynamics that seem to be taking shape for 2021. The global population couldn’t have asked for more from the Moderna vaccine,” said Seema Shah, chief strategist at Principal Global Investors in London.

Despite this, the next several months will be competitive for the banking industry and the price of Citigroup shares could also weaken in the upcoming weeks. COVID-19 cases in the US continue to rise while Europe is not faring any better with this pandemic.

Citigroup has released Q3 earnings results, total revenue declined 6.8% Y/Y while Q3 GAAP EPS was $1.40. According to the latest news, Citigroup’s new equity chief began to cut jobs. He started with managing directors but this could move to lower-ranked workers.

This stock could be a good long-term investment but maybe now is not the best time for investing in Citigroup shares because the price could weaken again.

Technical analysis: Bulls are in control of the price actionData source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are $44 and $40, $52 and $56 represent the resistance levels.

If the price jumps above $52 it would be a signal to buy this stock and we have the open way to $56. Rising above $56 supports the continuation of the bullish trend for Citigroup shares and the next price target could be located around $60.

On the other side, if the price falls below $40 it would be a strong “sell” signal and we have the open way to $35.

Summary

The US stock market hit a record this Monday thanks to news from pharma company Moderna saying its prospective vaccine was 94.5% effective in preventing the COVID-19. This stock could be a good long-term investment but maybe now is not the best time for investing in Citigroup shares because the price could weaken again. Citigroup expects to see continued pressure and consumer reflecting the impact of rates and lower levels of activity related to COVID-19.

The post Citigroup shares rise sharply supported by Covid-19 vaccine news appeared first on Invezz.

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