Market Analysis

Mixed signals at Goldman Sachs

Overall, the last three quarters of last year were not positive for the Goldman Sachs share, which moved in a downward trend. At the turn of the year, however, an upward rally began, which lasted until the end of January. With many attempts, the market tried to break through the crucial $200 level, but without sustained success.

Around the 12th of February, the short term 38-day smoothing line crossed the 50-day line from bottom to top, which could suggest further rises. However, a few days earlier the MACD passed its trigger line, suggesting a price fall. The MACD is now below its trigger line with a bearish tendency. The histogram is in negative territory.

These mixed signals could be interpreted as some uncertainty in the fight between bulls and bears. The $199 range could, therefore, be decisive for dominance.

For the last two trading days, the market has meandered around its 38-day smoothing line. If this does not support the bulls, then the price could fall. Support could then be in the $188 and 50-day smoothing range. Both are currently at the same level. If the bears dominate the field, further support could be found in the $180 range.

However, if the bulls prevail and make a sustained break through the $200 area, the picture could brighten further, with the next, more significant, resistance waiting in the $213 range. If the market pierces this area as well, another resistance could form in the $227 area.


GS.US Daily Chart |Source: ActivTrader

GS.US Daily Chart |Source: ActivTrader 


Written by Daniel Schuetz, External Analyst


*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.

All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at its own risk.