Citi (symbol: C) watching closely

Citi is looking frothy up here as it taps its highs near $38 from March earlier this year. A few interesting things about the current stock price and why it feels poised to pull back 10% or so.

*The last time when Citi was this far above its 200day sma (approx 20%) the stock fell back to its 200day sma within 6 weeks, before falling significantly below.

*The first attempts at a double top usually fail...thats WHY they call them double tops.

*The volume spike highlighted on the lower volume chart is very similar to the volume spike that preceded the March top.

Watch todays action (as well as action in the next few days) for a potential Evening Star, Abandoned Baby Top or Doji candlestick formation as a sign for a reversal. Support on the way down starts near $36, then more formidable short term support near $34.