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Citi stock is about to hit multi-year highs, says trader

Shares of Citi hit a year-to-date high on Tuesday, and Todd Gordon of TradingAnalysis.com said the charts are pointing to multi-year highs for the big bank.

Pointing out that bond positioning has turned overly bullish, Gordon said a drop in bond prices — and rise in yields — could be ahead.

Were that to happen, the long-term bond tracking ETF (TLT) could "go back and re-test recent range lows of about $116 [and push up] bond yields, which would help to support financials," Gordon said Tuesday on CNBC's "Trading Nation."

Among the financials, Gordon believes Citi is particularly "well-positioned" for a move up. On a chart of Citi dating back to 2016, the trader pointed out two trends that seem to suggest the stock is set to rally.

First, Gordon said Citi is coming out of what he calls a "sideways triangle consolidation" at around the $62 region. In other words, the stock had broken out of a narrowing trading range, a move that leads Gordon to believe Citi has more momentum to continue its climb.

And according to Gordon, Citi's big rally back in the later half of 2016 has set the stage for another rise as well. "You can see that the prior trend has been up and usually once a range breaks, the trend that was in place prior will resume," he explained.

Gordon sees Citi climbing to $65, a 4 percent move up from Tuesday's levels that would take the stock back to highs unseen since January 2009.

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Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

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