Chart of the Week: Goldman Sachs
We’re gonna be focused in on big investment bank Goldman Sachs today; GS is the symbol. Let’s take a look at this chart here.
You can see it’s had some really nice moves here since the start of the year. You can see that this made a nice little parabolic move here – parabolic shape here – of higher highs and higher lows. And more recently has come back down over here.
You can see it’s got the characteristics of a cup and handle pattern. So, making a nice little cup here with a handle down here, which means the stock has gotten a little bit frothy here at the early part of May and pulled back down. And came back down on lower volume. That’s what you like to see.
Take a look at recent action up here.
We had some resistance here, we had a little channel here. And the stock on Monday, June 24 broke out on pretty good volume. Obviously it’s not the volume we saw last Friday. Of course last Friday, the 21st of June, was an expiration day, and we had some unusual, enormous volume on that day.
But still, pretty strong volume for Goldman Sachs on Monday on a breakout here. We see the cloud is strong. We see the stock has bounced off also the 50 level on RSI.
Money flow could be a little bit better, but I think we’re going to get a little more money flow as we move into July.
Earnings season starts in the first couple weeks of July. We’ll also see the banks – not just Goldman Sachs, but JP Morgan, Bank of America, Citi Group, Wells Fargo, Morgan Stanley – all reporting earnings in the first week and a half, two weeks of July. So that could be a nice catalyst to get the stock moving.
We are literally eight points – eight and a half points – off an all-time high, which is very, very small. The stock could clip that in a day or two. We’re looking for some followthrough to the upside here. When we get that, I think that Goldman Sachs has got some room in the next couple of months to get to $500, which would be about a 10% move to the upside.
Take a look at Goldman Sachs; GS is the symbol. We like this one for higher prices.
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