In this analysis, we are examining Goldman Sachs Group, Inc. (GS) on the NYSE, a key player in the financial sector. The weekly chart indicates a potential bullish reversal in the form of a classic Symmetrical Triangle pattern that has been forming over the past 287 days.
Symmetrical Triangle Pattern:
The Symmetrical Triangle is usually a sign of indecision, in this case, it seems to be acting as a reversal pattern after a downward trend.
Analysis:
Goldman Sachs' previous trend was downward, represented by the blue resistance line. However, this downward trend seems to have been interrupted by the symmetrical triangle pattern, suggesting a potential reversal.
The price is above the 200 EMA, indicating a bullish environment. Currently, it appears that the price may close above the diagonal resistance. Confirmation of this should occur when the candle closes. If it does, a long position could be considered. The price target in the event of a successful breakout would be 453, corresponding to a rise of about 32%. A minor resistance could be encountered at 420.
Conclusion:
Goldman Sachs' weekly chart presents a promising bullish reversal setup. If confirmed by a breakout above the diagonal resistance, this could offer an attractive long trading opportunity.
Please remember, this analysis should form part of your overall market research and risk management strategy, and is not direct trading advice.
If you found this analysis helpful, please consider liking, sharing, and following for more insights. Wishing you successful trading!
Best regards,
Karim Subhieh
Disclaimer: This analysis is not financial advice and is intended for educational purposes only. Always conduct your own research and consult with a financial advisor before making investment decisions.
I really appreciate the clarity of your charts. The triangle pattern got messed up a bit since you published it, but I think it generated the right idea. But I have one question: Could you elaborate on your choice of the PT? $453 is 132% of $343, which I suppose was the point at which the upper edge of the triangle got broken. But what made you pick a 32% rise off that level? Is that Fibonacci-related?
KarimSubhieh
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@matthias, thank you matthias I appreciate your kind words. I use the following calculation; The width of the symmetrical triangle at the widest point in the form of a vertical line and adding it to the breakout level.
matthias
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Thank you for that clarification, @KarimSubhieh. That's very helpful.
Excellent work....very impressed with the chart also. I see too many people using two touch triangles - which are random at best. You need more touches to have something that's actually reliable.
KarimSubhieh
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@kosai19, thank you very much Im glad you found value in it! According to the rules of classical chart analysis, in the case of a symmetrical triangle, you always need 2 points of contact to the upper and lower boundary to ensure validity. But this is also true for all other price patterns. Therefore you are absolutely right about your observation.
AMIT-RAJAN
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Welldone idea mate! nice work keep it up thank you very much for sharing this
KarimSubhieh
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@AMIT-RAJAN Thank you buddy means a lot to me! All the best