--Financial Tools ---Futures Market---ADD HERE LINK-- OPTION ALERTS --BENZINGA--

« Home | Trade Ideas for Tuesday - C, CIEN, RFMD, BAC, WB » | Stock Picks and Trade Ideas for the week ahead - E... » | Stock Picks and Trade Ideas for Friday - TRN and G... » | Stock Picks and Trade Ideas for Thursday -MRVL, GO... » | Stock Picks and Trade Ideas for Wednesday - CCC, C... » | Stock Picks and Trade Ideas for the week ahead - P... » | Pictures of YouTube’s office “open” space » | Funny pictures of Beijing Olympic Games 2008! » | Explore the universe that surrounds us » | Stock Picks and Trade Ideas for Friday - TRN, GOOG... » 

Wednesday, September 10, 2008 

Wells Fargo surpassed Citigroup in market Cap

The Wells Fargo surpassed Citigroup in market Cap and became the third U.S. bank more valuable. The stock closed the day at $31.17 which gave it a market capitalisation of around 103.14 billion of dollars. Citigroup closed at 18.88 which give it a market capitalization of just 102.81 billion dollars. This institution remains, however, as the largest bank by assets. According to Bloomberg, two years ago, Citigroup had a market capitalisation of more than 240 billion dollars, which doubled the value of Wells Fargo. Since then, shares of Citigroup accumulate a devaluation of 62%, which compares with a fall of 10% of Wells Fargo. The biggest bank by market value is the Bank of America, estimated at 148.29 billion dollars, followed by JPMorgan worth 135.66 billion dollars. The crisis of the market for high-risk credit already has resulted in more than 500 billion dollars in losses and depreciation of assets in financial institutions throughout the world. This list is led by Citigroup that has already lost 55 billion dollars. From a technical perspective, both stocks are trading in different technical scenarios.

Chart courtesy of stockcharts ( click to enlarge )

WFC - The recent breakout from the longstanding resistance line was accompanied with volume, however today's action was not so good. The stock failed to follow through and broke the resistance turned support at 31.73, indicating probably a false technical breakout. Looking closely at the technical chart, it still showing some bullish sign as 50 day moving average near to cross over 200 day moving, MACD above 0 and K line above D line. So, it's time to wait and see which direction the stock will choose to go.

Chart courtesy of stockcharts ( click to enlarge )

Citigroup has been trading in a downtrend since its highs in early 2007, depreciating from a 52-week high of $52.31 to a low of $13.77. Currently the stock is trading at around $19 and has been bouncing between $17 and $21. The technical chart above shows the stock has been testing the strong horizontal resistance of $21 (on 3 separate occasions) for the past 2 months. Yesterday, the stock failed again to surprass this key level and the Volume traded was quite large, which may be a indication that is too early to break this resistance. However, the stock still displaying some bullish signs. The MACD is still above the signal line and the stock price is above the 20 and 50 day moving averages. If this stock is still bullish, it may be able to hold its position above the 50 DMA. Otherwise, if the stock has really turned bearish, we can confirm it if it breaks the $18 support.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

That's All. See you tomorrow !!!

AC

Labels: ,

Bookmark and Share

Contact

About Me

    Photobucket
  • I'm a 43 year old Independent Trader using proprietary technical analysis with more than 18 years experience of investing in the US stock markets. I started this blog in 2006 simply as a way to share my thoughts about capital, risk management, and trading. My blog contains only my personal opinion and is provided for informational purposes only.

  • Benzinga.com supporter

    Stockal supporter

    Benzinga.com supporter



    FREE NEWSLETTER

      Enter your email address:

      Delivered by FeedBurner

      Subscribe my feed :

    Support AC

    • Support AC Investor Blog, Donate with PayPal

    Advertising

      Interested in advertising on AC Investor Blog ? Click Here

    RECOMMENDED



    TRANSLATOR

    Site Information

    Stock Market Blogroll

    Friends BLOGROLL

    ARCHIVES

Powered by Blogger
and Blogger Templates


Add to Google