Goldberg: Citigroup Chart Shows Stock Could Collapse

Ken Goldberg of The Street recommends investors to sell Citigroup Inc C shares "right now," as a chart shows the stock will plunge to the single digits.

"Although it shows a five-wave structure to the 2015 peak, that rise is best labeled as wave C-circled of b-circled," Goldberg said, citing a chart showing the stock movement from the late-2011 low till date.

"In other words, that's the end of the entire rise off the 2009 low, near $10," Goldberg noted.

Image via The Street

According to Goldberg, there should be a trading bounce arriving later this year, but that bounce likely will be from the low $30s. Then, "a bear market rally should retest the lower $40s before bearish forces return to pummel this "too big too fail" bank's stock price down to the single digits."

Goldman urged investors to use the $44 level as a stop loss, so that weakness into at least $36 in the next couple of weeks can be avoided.

Citi shares were up 0.82 percent to $45.48. They were trading between $34.52 and $60.95 during the past 52 weeks.