Citigroup is set for more declines after falling below the "critical and vital" support level of $10.40, which was its1998 low, Royce Tostrams, technical analyst from Tostrams Groep, told CNBC Friday.
"It has triggered another sell signal which means the downtrend will be resumed and the conclusion is don't buy Citigroup yet. You have to remain on the sidelines," Tostrams told "Squawk Box Europe."
Shares of Citi closed at $9.45 on Thursday, having started the year just shy of $30. The next support level is around $3.50 a share, Tostrams said.
The bearish signal extends to the entire financial sector, according to Tostrams.
Tostrams expects the S&P 500 index to hold a sideways trading range in the short term and bounce between 839 and 1045 points.
"Turnover remains very low. There is no conviction in this market," he added.