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).
- 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
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.