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 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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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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