Chart of the Week: Goldman Sachs
This week we’re gonna be focused on big financial name/investment bank Goldman Sachs; GS is the symbol.
So you can see from the last big move up in December – that was a huge move at the beginning of December – the stock pretty went sideways. Well, slightly upwards but not too much here. And of course this is a stock that carries a lot of volatility with it. But it didn’t have a really steep upwards pattern in trajectory – it had mostly sideways to slightly higher.
From the low – from this big bar in December, which is about $366 – 367, to the recent high before the breakout was about $395. So about 30 points of movement for the stock in about three months.
We had a big breakout here at the end of March, and the stock remains in the upward part of this range. This is what I like to see. I like to see a stock that doesn’t break down after a big move up. And they do have big earnings coming up fairly soon.
We also see a nice decline in volume as the stock just kind of goes sideways here, which is also what you like to see after a stock has made a big move up.
Relative strength is strong; it’s making higher highs and higher lows. The cloud is green and not red, which means that there’s possibly some more upside. We are above the cloud currently.
Also, the last thing we have is Chaikin money flow, which isn’t really all that substantial here. But it has moved to the positive side after spending about a month and a half negative, in the red. Does it mean it’s going to move up a lot? Well, we’d like to see that build up to some level that we saw back in November/December and even the early part of January, with a little bit more money flow, which indicates much bigger institutions coming in and buying the stock.
I like Goldman Sachs here. They do have earnings coming out in a week, week and a half. I think this stock’s got some room to get to $425, and if it gets above there, maybe $430. And beyond there probably much higher levels than that.
Again, I like this. The fact that it’s facing here at a higher level, ready for the next move, and it looks like it’s gonna be higher.
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