One of the most overlooked trends recently could be the rally in Goldman Sachs.
Today we’re considering some potentially important technicals after the investment bank surged 35 percent between mid-October and mid-November.
The first question is, how much of a pullback to expect? This chart draws a Fibonacci retracement from $299.99, the weekly close immediately before GS reported strong earnings and plowed higher.
The stock is currently holding the 38.2 percent level. The next important price point could be at the 50 percent retracement (around $345).
Next, the 50-day simple moving average (SMA) is coming up from below. Some trend followers may view that as potential support.
Third, the 50-day SMA had a “Golden Cross” above the 200-day SMA about a month ago. Also notice how the October low was higher than the July trough. That’s a positive divergence from the S&P 500, which made a lower low in Q4.
Fourth, the $348 level is potentially important because it’s near the monthly lows from June and July 2021 – plus the monthly highs in March and April 2022.
Finally, stochastics have dipped to an oversold condition.
All these patterns may suggest GS is nearing some levels where buyers may get interested. Traders may watch for opportunities this week, especially with volatility expected around big events like CPI and the Fed.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
Today we’re considering some potentially important technicals after the investment bank surged 35 percent between mid-October and mid-November.
The first question is, how much of a pullback to expect? This chart draws a Fibonacci retracement from $299.99, the weekly close immediately before GS reported strong earnings and plowed higher.
The stock is currently holding the 38.2 percent level. The next important price point could be at the 50 percent retracement (around $345).
Next, the 50-day simple moving average (SMA) is coming up from below. Some trend followers may view that as potential support.
Third, the 50-day SMA had a “Golden Cross” above the 200-day SMA about a month ago. Also notice how the October low was higher than the July trough. That’s a positive divergence from the S&P 500, which made a lower low in Q4.
Fourth, the $348 level is potentially important because it’s near the monthly lows from June and July 2021 – plus the monthly highs in March and April 2022.
Finally, stochastics have dipped to an oversold condition.
All these patterns may suggest GS is nearing some levels where buyers may get interested. Traders may watch for opportunities this week, especially with volatility expected around big events like CPI and the Fed.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.