Goldman Sachs (GS) is still about 10% off the all-time highs set back in 2007, just before the huge financial collapse crippled the giant investment bank and its stock. As you may recall, there was much talk in 2008/09 that the big investment banks (Citi, Morgan Stanley, etc.) might buckle under from all of the bad debt they had accumulated – and just disappear. But, if there is one thing we should know, it is to NEVER count out Goldman Sachs.
Taking a look at the chart to the right, we see a textbook breakout on strong turnover. The recent high (at $202) came post-earnings, and the stock consolidated that move on lower volume – exactly what we like to see after a run up. The more recent breakout was on higher turnover following a strong buy signal on the MACD.
Goldman Sachs’ channel is well-defined and may predict a new move toward all-time highs, which is about 10% above the current price level. If we do see a breakout past $202, it is likely that we will also see somewhat of a pullback. A pullback to $205 or so might be an ideal entry point for an options trade, so we’ll keep our on this one.
Goldman Sachs Chart Analysis
Take a deeper dive into the chart action and learn how to read the technicals as I walk you through Goldman Sachs (NYSE: GS) and my analysis as I mark up our chart of the week.
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About Goldman Sachs
The Goldman Sachs Group, Inc. operates as an investment banking, securities, and investment management company worldwide. The company operates through four segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management. The Investment Banking segment provides financial advisory services, such as strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, spin-offs, and risk management; and underwriting services, including public offerings and private placements of a range of securities and other financial instruments, as well as derivative transactions entered into with public and private sector clients.