Market Analysis

Goldman Sachs – will the bulls take charge?

We looked at the Goldman Sachs share at the beginning of March (link: Mixed signals at Goldman Sachs). At that time there was no clear direction for the market.

Since the short upward rally, which ended at the end of January, the share has been moving sideways in a band between US$188 and US$200. There was a brief outburst on 18 March above US$200 but it proved unsustainable. The market fell back to the lower limit of the band at US$188.

From here, the stock could make another attempt to cross the US$200 area.

The short-term 39-day smoothing line has crossed its 50-day average from bottom to top, which could be seen as a bullish signal. The MACD has approached its bottom-up trigger line. Crossing here could also be seen as a bullish signal.

If the bulls take charge, on the way up, the area around US$200 (the 18th and 19th March highs) could provide resistance. A jump over here could offer further opportunities for the stock. Structural levels in the US$213 and US$227 areas could act as resistance zones. In the US$234 area, the November 2018 highs are waiting, which initiated the downward movement then and could now serve as a resistance zone.

However, if the bears prevail, the first support could be the lower limit of sideways movement in the US$188 area. Further support may be found in the US$180 and US$174 ranges. If the market breaks through here as well, then there is a chance that the lows of the downtrend will be tested.


GS.US - daily chart. Source: ActivTrader

GS.US  Daily Chart | Source: ActivTrader 


Written by Daniel Schuetz, External Analyst

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