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- 1 Citigroup Inc. (NYSE: CITI) posted quarterly earnings on July 14th, 2023 and the stock has been declining since then.
- 2 Citigroup stock fell 10% in a month and moved ahead in a downtrend.
- 3 Broader banking sector stocks are going through bleak conditions as major rating agencies signal downgrade.
Citigroup Inc (NYSE: CITI) fell prey to a recent banking stock rating decline spree in the past few days. Rating agencies Moody’s and Fitch Ratings indicated a potential downgrade of bank stocks. Citigroup stock price dropped up to 5% since the warnings along with the major banking company stocks meeting the same fate.
The U.S. banking sector had been under pressure given the Federal Reserve’s interest rate hikes during the post-pandemic recovery phase. The phase was tough for even the major banks to keep going. In the initial months of this year, the repercussions surfaced with the fall of several banks.
The American banking agency Federal Deposit Insurance Corporation (FDIC) signaled the preparation for proposing a new set of rules for banks on Monday, August 14th. This step intends to revamp the approach of large financial institutions for planning the wind-up process in case the businesses fail.
Fitch Ratings suggested a potential downgrade in stock ratings of some of the large U.S. lenders.
Last week, Moody’s slashed the ratings of ten mid-sized banking institutes pointing towards the risks related to funding and bleak chances of profitability.
Citigroup belongs to the group of institutes to get affected after the announcements. The concerns elongate the downside streak in the stock price that started with the earnings on July 14, 2023. CITI stock lost 4% of its value in a single day back then.
Over the last month, Citigroup stock price lost over 10% given the net income to remain below the subsequent quarters and year-over-year.
Citigroup Stock Price Movement
Currently, CITI stock price is trading at $43.2 dropping over 2% in the last intraday session on Tuesday, August 15th. The stock is in a downtrend for a shorter time frame and continues to go down.
Citigroup stock is stalling at its immediate support of $43. If it moves ahead with the decline, it could attain the yearly lows between the $40 to $43 price range. In case of reversal, the stock price could sustain the support and consolidate within the $43 to $47 price range.
The 50 and 200-day exponential moving averages (EMA) are above the current Citigroup stock price. The MACD curve is below the zero line suggesting a downtrend for the stock price. RSI is 42 indiating CITI stock to close in with bearishness down the line.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
