GS Long PlayGS recently popped above its support / resistance at $235, rising to a high of $250 before beginning consolidation back down to $235-$240 forming a flag / pennant pattern. Furthermore, the RSI has been trending nicely and is indicated another bounce should occur shortly. The touch of the 50 day MA is further confirmation, although GS has dipped below it on a few occasions so it needs a bit of room to play.
I often use the ichimoku cloud on the daily to confirm these types of trends and it does so nicely, showing the price consolidating back to the cloud which is currently large enough to "prevent" a bearish move. While the leading line has crossed the base line, I typically view this as noise when the asset is consolidating above the cloud as it is more common than not. It is, however, something to be aware of, and represents a very small red flag on the play.
I will be looking at the shorter time frames (~15 minutes to time specific entry on this long play, and most likely March 20th 250 Calls
