A Daily And Weekly View Of Goldman Sachs

I wanted to highlight Goldman Sachs (GS) as it is in a structurally similar position to Caterpillar (CAT) which I mentioned in the previous post.  Let’s see the confluence support below and possible resistance above and watch price closely for a break.

Goldman Sachs (GS) Daily:

Goldman Sachs broke an ascending triangle to also break resistance via the falling 50 day EMA, a remarkably bullish development given the current climate, and we’re at the precipice of finding support on a retest of the daily 50.  Also, there is quite significant support about the $80 per share level, which comes in from the rising 20 day EMA and the horizontal trendline (resistance once broken becomes support) of the ascending triangle.

Should price break beneath $80 per share, it would be a remarkably bearish development and would trigger an aggressive short-entry (and stop-loss of any long positions).

For now, it would appear the $80 level should be expected to hold until proven otherwise.

With this bullishness developing on the daily chart, let’s see if there might be any contradictions on the weekly chart.

Goldman Sachs (GS) Weekly:

Just like Caterpillar (CAT) (and many more stocks, I suspect), we had significant potential resistance overhead.  First, the falling 20 week EMA registers right at $100 per share, which would be an important test, and in addition, the 38.2% Fibonacci retracement of the May/July consolidation highs to the November lows comes in at roughly $101.00 per share, adding a significant confluence resistance zone about the $100 per share level.

As if that wasn’t enough, it appears that price is forming some sort of rising wedge or bear flag pattern into this resistance zone.

If we could break above  $100, it would be a major accomplishment but it would seem the odds favor perhaps a test of this level and that it should hold, meaning a short-sell entry is potentially coming up.

Continue to watch GS closely - if only from an educational standpoint - for any additional clues as they develop.

Posted in Categories: Contributor, External Research, Financial, Stocks.

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