GS is most discussed financial institution in Wall Street because of its reputation. But this year GS  stock did not show  strength to move, rather showed poor performance day after day.  Even in the current strong bullish move of the stock market, GS chart did not show any strong sign to move upward.  Stock is now staying in the 150 support level but  this support may break down if market started to show weakness or start pull back in the upcoming weeks.

GS Chart
Goldman Sachs Chart

In the chart, stock broke its weekly descending triangle panel in January from long time strong support level as market headed to the down.  Even though market pull back and regained all the loss, but GS did not show any sign to regained its yearly loss. Rather stock made almost 38 percent pull back to upside and now moving on the sideways. From Fibonacci retracement  point, retracement between 23 percent to 38 percent is shallow pull back and used for quick move for stock. This is a possibility stock  may  break  to  down side and will make a quick move to the Descending triangle target price 130.

GS Chart
GS Chart

 

Second chart stock made a bearish engulfing pattern in the weekly chart.  Even though this bearish engulfing pattern is not strong and did not engulf the previous candle completely either, price breaking down below the $150 can induce a quick move to the downside.  If stock closed below 148 in the upcoming days, this is very possible stock will made a down leg and hits 130 level price as this is the max target of descending triangle in Goldman Sachs chart.

 

GS Chart (Daily)
GS Chart (Daily)

In the Daily chart of Goldman Sachs, Stock failed to break long-term downtrend even though stock market is bullish. This week Dow Jones industrial average closed above 17500   and only 800 points away from the all-time high. In the daily chart stock already showed its relative weakness compare to market index s&p 500 and Dow Jones index. Currently stock is holding below 100 day and 200 day moving average and struggling to holding above the 50 day moving average.

Market indexes Dow Jones industrial average and s&p 500 both are in the resistance zone, a market pull back is very much expected as both indexes  has made a strong 5 week bullish  movement from the w bottom pattern and RSI index for both indexes are extreme or over 7o percent. If market shows weakness in the coming weak, this  may be a possibility that we will see another down leg  of Goldman Sachs chart.

Volume of Goldman Sachs chart was also low and barely break 50 day moving average. As stock market started to make bullish move from its W pattern bottom and still did not pull back, GS did not show that kind movement and already made a mini double tops in the chart. Double tops is another indicator of weakness in the upward movement.

 

Bottom line  : Stock needs some breaking news or catalyst to start move upward. Stock needs break at least $160 and closed above that price to prove itself  Otherwise, stock may move to the  down side during the market weakness or pull back.

 

Disclosure: This article is written for education purposes only. Author has no position in the stock mentioned.