Goldman Sachs (NYSE: GS) entered a sliding mode on January 5th, after hitting resistance near the 411.00 barrier. On Friday, the stock opened with a negative gap, but hit support slightly above the 372.00 barrier, and then it rebounded somewhat. Overall, Goldman Sachs has been oscillating between that barrier and the record high of 427.74 since July 21st and thus, we will consider the medium-term outlook to be neutral.
A clear break below the lower bound of the range, at 372.00, could confirm a forthcoming lower low and may initially allow declines towards the 348.00 zone, marked by the lows of June 18th and July 19th. If the slide doesn’t stop there, we may experience extensions towards the 310.00 – 315.00 territory, defined by the low of March 29th and the inside swing high of January 14th, 2021, respectively. If there are no buyers to be found near that zone either, then the fall could continue up until the 270.00 area, marked by the low of January 28th, 2021.
Taking a look at our short-term oscillators, we see that the RSI turned down and fell back below the 50 line, while the MACD, although fractionally positive, turned down and just touched its toe below its trigger line. The RSI is already pointing to negative speed, while the MACD suggests that the stock could start gaining such momentum very soon. However, as we already noted, we prefer to trust the price action more, and wait for a dip below 372.00.
In order to start examining whether the majority of investors are increasing their exposure on this stock, we would like to see a clear break above the record high of 427.24, which also happens to be the upper end of the aforementioned sideways range. This would take the stock into uncharted territory and perhaps aim for the 460.00 territory, where another break could pave the way towards the psychological zone of 500.00.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2022 JFD Group Ltd.