Markets – Macro – Technicals

$GS: Goldman Sachs

The other day I mentioned financials needing a rally. Obviously Goldman Sachs is a big part of the group and the chart looks like dearth frankly.

Year to date the stock is down 5.5% as we speak and is in the midst of a topping pattern while breaking a bear flag to the downside last week.

To invalidate the pattern $GS really needs to close above $235/236. Failure to do so and a break of the $220 area activates the larger topping pattern and targets the $212-$217 range with downside risk into $192-$194.

The upside: The RSI closed last week below 30, not a spot to want to press short, and today the complex is bouncing during the beginning of OPEX week, typically bullish in April.

Updated 4/18:

Following its poor earnings report today $GS got clocked! As a result the stock dropped to target the first risk zone I mentioned yesterday $212-$217 and the filling of the open gap:

With the RSI now at 25 and new lows in place the RSI shows a positive divergence on the daily chart and a large open gap above. As long as $GS can stay above today’s lows it has a shot at filling the upper gap. Without an eventual sustained break above $226 the stock risks eventually filling the lower open gaps below.

Updated 4/20:

$GS has moved higher on the positive divergence and is now up almost $3.5 above the level posted on Tuesday. The RSI is now at 33. The stock is now on route to try to fill the earnings gap, but the daily 5 EMA will pose resistance as will the previous lows at $220.85. Failure to recapture these price zones opens the possibility of retesting lows or making new lows:

All content is provided as information only and should not be taken as investment or trading advice. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. For further details please refer to the disclaimer.

Advertisements

Tagged as: , ,

»

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

The material on this website is provided for informational purposes only, as of the date hereof, and is subject to change without notice and does not constitute investment advice.
Home | About | Disclaimer | Contact
Copyright © 2013-2017 NorthmanTrader
The materials on this website may not be suitable for all investors and are not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.