June 9, 2011 | In: Financial

Citigroup Inc. (C) Is Very Close to the 52 Week Low!

Citigroup Inc. (NYSE:C) is now trading at $36.81, just $0.60 above the 52 week low. But how low can it go? I think there will be huge support at the $35 level, but if that support is broken, then the stock could go down to $30.

But the question is, is C a bargain at this very moment? I believe it is, in fact, I’m sure it is, and if you look at last June, you will see that the stock wasn’t doing great at that time of year either (maybe it’s a seasonal thing). I still believe that C has the potential to touch the $60 level by the end of the year, so if you buy now, you will be able to make 50% gain until the end of the year. I’ve always made money with C.

There’s no reason for C to go down, with the exception that the whole financial sector is not doing great, and is currently under skepticism by small and institutional investors alike, but when the bearish sentiment goes away, then the stock will definitely jump. By the way, let’s not forget, the past two weeks were a bloodbath for the market in general.

I expect C to fall below the 52 week low, only to rebound to at least $45 next month.

By the way, I have reported a couple of days ago that BAC will break the 52 week low, and it did, the same day! I’m getting pretty good at this! However, I still don’t think that BAC is a bargain, that stock is crazy and if it goes below the $10 level and starts trading in single digits, then it will be in freefall! Let’s see!

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