Chart Chatter: $GS

Welcome to Chart Chatter where we discuss various technical charts we find of interest. We cover indices, signals and stocks on different timeframes highlighting different technical techniques we use over time. We’ll focus on key observations we find relevant which readers may find of use for their own trading.

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What’s wrong with Goldman Sachs? Benefitting from tax cuts and rising yields one would think the company’s chart would be in stellar shape. It’s not.

Indeed the stock is down over 9.5% year to date quite in contrast to market highs we’ve recently seen in $DJIA, $NDX and $SPX.

On the daily chart we can observe that the stock fell below its 200 day moving average in April and has since failed twice to recapture it:

Also the stock again fell below its 50 day moving average.

On the weekly chart we can note a key long term moving average, the weekly 50MA, to also now being resistance:

The larger message: What was support is now resistance.

Putting this in a larger context here is the monthly chart:

This is an unconfirmed potential topping pattern. However, should the neckline break the stock could eventually revisit its 2016 lows.

Goldman is clearly weak compared to the larger indices this year and the stock has a lot to prove. A move back above these key moving averages could suggest a revisit of the early 2018 highs. But as of now this stock remains weak.

But Goldman is not alone. The larger banking sector is lagging tech, industrials and the broader market.

Does the banking sector know something that the larger market doesn’t?

It was a relevant question to ask in 2007:

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