Technicals Showing Citi Rally on Treasury Exit?

By Tiernan Ray

Citigroup (C) will start a “real rally” after the U.S. Treasury’s lock-up on the stock expires next week (March 16), writes Dow Jones Columnist Tomi Kilgore in a column originally published yesterday.

Kilgore picks up on a Deutsche Bank report that I mentioned on Wednesday, showing several money managers are inclined to buy the stock when the lock-up expires.

He also cites several technical indicators: Citi’s short interest has more than doubled in the last month, he notes, and the stock has stayed above its 50-day moving average the last two weeks.

The next technical areas to watch are the $3.70 to $3.80 January resistance levels, he writes, followed by the $4.25 to $4.30, which encompasses the November high.

The Treasury Department on Thursday said it was looking to get out of Citi soon.

Citi shares are up 8 cents, or 2.3%, at $3.58.