Top Story

Goldman Sachs, a laggard is breaking out finally !

Medium-term technical outlook on Goldman Sachs (GS)



click to enlarge charts

Key Levels (1 to 3 weeks)

Intermediate support: 220.35

Pivot (key support): 207.80

Resistances: 238.20 & 245.00

Next supports: 179.90 & 160.05

Directional Bias (1 to 3 weeks)

Bullish bias above 207.80 key medium-term pivotal support for a further potential upleg to target the next resistances at 238.20 follow by 245.00 next.

However, a break with a daily close below 207.80 invalidates the bullish scenario for another round of corrective decline sequence within its long-term secular uptrend phase in place since Nov 2008 low for a drop towards the next support at 179.90 (the swing low area of 03 Jun 2019 & 61.8% Fibonacci retracement of the up move from 26 Dec 2018 low to 07 Nov 2019 high).

Key elements

  • GS has staged a bullish breakout yesterday, 08 Nov from a 3-month sideways range configuration in place since 24 Jul 2019 high with a relatively high-volume reading.
  • The weekly & daily RSI oscillators have continued to evolve in positive configurations which suggest medium-term upside medium remains intact.
  • The significant medium-term resistance zone of 238.20/245.00 is defined by a swing high area of 14 May/28 Aug 2018, a Fibonacci retracement/expansion cluster and the upper boundary of a major ascending channel from 26 Dec 2018 low).
  • Relative strength analysis from the ratio charts of GS against the market (S&P 500) and its sector (Financials) are showing “bottoming” formations. These observations suggest an impending potential outperformance of GS after underperforming both the S&P 500 and Financials sector for almost 10 months.

Charts are from eSignal 


Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.