Citigroup shares could slump toward their 1992 low of around $1.90 as selling pressure for the beleaguered Wall Street giant remains strong, Royce Tostrams, technical analyst at Tostrams Groep, told CNBC Friday.
“Selling pressure is dominating the market,” Tostrams said. “There is only support at the levels of 1992, when the price of Citigroup was hovering around $1.90, $2,” he said.
Shares of Citigroup have fallen below a low put in place at the end of last year, which was $3.77, Tostrams pointed out. The dip below the crucial level has “confirmed the downtrend,” he said.
“Based on the technical condition of Citigroup, everything remains very weak,” he added.
The S&P 500 is teetering above critical support levels and could slump another 200 or 250 points over the next three or four months, Tostrams also said.
The current “technical condition will trigger another sell signal on Wall Street for the Dow, S&P and the Nasdaq,” he added.
Shares of Citigroup closed at $3.11 on Thursday.
Watch the full Royce Tostrams interview above.
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