GS setup for a fall, targeting lower prices in next 30 days

BATS:GS   Goldman Sachs Group, Inc. (The)
It appears to me that GS is running up into heavy resistance from the mountain of sellers over the $110 level and into the GAP supply zone where GS slid from 108 to 102 on aggressive selling this spring .

The rally appears to be forming a persuasive-pattern where plenty of new highs and smaller reactions creates the illusion of plenty of strength. The strength is masked by low volume , which indicates we should be skeptical of the rally.

Volume on the exchanges is dwindling and that is a fundamental, long term weakness. The Knight-Capital disaster is a positive for GS as it makes the competitive landscape that much smaller for GS to dominate.

I wish us all good fortune in entering a trade against the trend - it always takes "guts" to stand in front of what seems to be a steam train. I could see entering anywhere from the 105 to the 110 level. So, follow this chart and I'll do my best to pin-point the safest entry time that I can find.


9:29AM EST Friday, Aug 17, 2012

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