This is what we said on 13 Apr 2011

Citi has become one of the worst performers (among Global 1000) of the last 24 month bull rally, it deserves another look. Our Jiseki performance rankings suggest that Citi is still among the bottom 20 percentile of performance over a quarter. Though the Jiseki cycles are not yet positive RSI support at 40 suggest that any fall in the stock should see buying support coming in. When a financial major suggests accumulation on an intermediate degree, it means that we are still in a continued bull market and any dip down should be intermediate in nature. We have illustrated both the Dow and Citi charts in the case here. Interpreting Citi price structure is the challenge, the Citi itself, never lies.

If the markets are connected, one should be able to understand the market structure by looking at a market component. Putting simply this means the market structure of a specific sector should suggest the direction of the broad market. Was this not the similar thought which Charles Dow mentioned in the Dow Theory? How different is the DOW Theory approach where we could (can) understand the DOW Industrials by looking at the DOW transports from understand the state of the bull market by studying a few financial majors.

Today we look at another two London financial majors, Barclays and Aviva. We also have revisited CITI. And guess what? Though CITI is 20% lower from where we left it in April, it still is above 0.618 Fibonacci retracement levels from 2009 lows.

Barclays has also moved back above 0.618 Fibonacci levels and is ready to test a multiyear trendline resistance. A break above 250 would confirm positivity. If these correctives look unclear and dirty, we have Aviva with a clear corrective a-b-c structure and 0,618 Fibonacci support. Even if we are looking at a large complex corrective, above 300 the price structure suggests higher. Now when three top financials fail the break previous lows and show resilience how can we ignore the Bull. And before we rest our case, let’s not forget to review Jiseki cycles for BARCLAYS and AVIVA. The cycles are bottoming and positive.