Let’s do some analysis on $GS, as they reported earnings this morning. On April 16th of this year, the stock spiked down hard on heavy volume when the SEC announced their fraud charges. That high volume news driven selloff more or less began the broad market correction as well.
Ever since that huge spike down, however, the stock has pulled back in an orderly way, with tight price candles and on benign volume. In essence, it was a slow drip down over the past few months. As the updated daily chart illustrates below, the falling wedge started to base out, and the 20 day moving average followed suit as it flattened out as well.
After the stock had a nice run higher on news of the settlement with the SEC last week, it has pulled back in a gentlemanly manner. In my view, the 50 day moving average is crucial here. You would like to see a benign retest of that reference point, and then see both price and the 50 day turn back up as well.
$GS may, indeed, have bottomed here. I do not think that you should go buy this in size right here, right now. However, I believe you should keep this near the top of your watch list. I currently have no position in the name.
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Added to my watch list!
Kind of looks like a cup and handle formation…any thoughts?
It could be. The key is for the 50 day to turn back up with price. A bumpy ride is to be expected. A cup and handle formation would be the equivalent here of price backing and filling to the 50 day, and then turning back up.
I picked some GS up a couple of weeks ago and will add on a pullback.
The question I have is if Goldman can “fight the tape” if we get a broader market sell off into this falling wedge or worse, in the event that wedge morphs into a channel…?
Forming a possible “Hammer Time” candle today??
this chart seems as though it says accumulate, the other 2 cup and handle attempts failed in the handle formation,this one seems likely to stick,if, and thats a big IF,if gs can close with a candle that is tight, and in the range for at least till end of thursdays close to see if it gets a good formation for handle. gs will saunter back to 180.they just dont want to do it loudly.