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

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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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Selling "over" a previous day's high and using a 1 average true range ($2 or so) stop is a decent way to leg in if you split your entry into four pieces. Today, that means anything over $104 with a $106 stop.
Add RSI below it gives a good picture, S&P indicators are in overbought zone
So far this "resistance zone" is holding, but the "rising wedge" is failing to correctly describe the post-pattern reaction, implying it isn't a rising wedge. When you figure that GS topped in a rising-wedge pattern before this year (notice it was caught here at Tradingview), it seems a bit more unlikely that we will see the same pattern again in the same stock so soon. So, I think I will back away from this idea as it isn't panning out.
Taking small losses is a good thing! I'm not sure that everyone gets to see these comments I make, especially when they vote well after the fact that they "disagree". I believe that voting on a chart should be closed "after the fact" or "after the trade is closed". For any of you who think they can vote against a chart "after" the trade, think again, please.
The neckline of the previous HS and the top of the wedge coincide! EWT wave 3 to concludes there. Pull back to top of wave 1 or Fib support is possible between i.e. $ 100.49-99.57 odd before wave 5 kicks in taking it higher...Then GS is also known to prop their own shares in face of tech adversity, Cheers https://www.tradingview.com/e/r2b2b6p4/
GS terminal triangle possible
Click on this very profitable previous trade in GS - note that there is minimal "heat" or "loss" initially upon entering the trade.
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