• Citigroup shares post 21-month high in 2024

• But experience a setback ahead of Q4 earnings on Friday

• Short-term oscillators exit overbought territories

Citigroup’s stock has been staging a V-shaped recovery since its 2023 bottom in October, jumping above a crucial trendline taken from its February peak. Moreover, the price posted a fresh 21-month high of 54.66 in the past week, but quickly retraced lower  due to reaching overbought conditions.

Should the recent weakness persist, the stock may slide towards 49.91, which is the 78.6% Fibonacci retracement of the 53.13-38.07 downtrend. A break below that region could open the door for the 61.8% Fibo of 47.38. Lower, strong support could be provided at the 50.0% Fibo of 45.60.

Alternatively, in the case of a positive earnings surprise, the price could drift back above the February peak of 53.13. Conquering this barricade, the bulls might propel the stock towards the recent 21-month peak of 54.66. If that barrier also fails, we could potentially see a test of the 123.6% Fibo extension at 56.68.

In brief, Citigroup’s stock rally has taken a breather ahead of its Q4 earnings call as momentum indicators had reached overbought conditions. Moving forward, the outcome of tomorrow’s report will most likely decide the stock's next move.