Highlights:

  1. GS Stock Chart looks still weak but much better than the march 2016. Earning before the market open will determine what will be the stock upcoming trajectory.
  2. GS Chart made strong bottoming pattern last 2 month
  3. GS earning surprise will not only affect GS Itself, but also the financial sector stocks and market indexes as JPM earning did last week.

 

While Dow Jones closed above 18000 point for the first time this year, GS is still down from its December 2015 close. Stock is down 15 percent from 2015 close, even though stock moved 13.5 % from its February low. Stock needs to break its 2015 closing price $180 in order to adjust with current market uptrends. However, Stock 15 % down from its 2015 close signals investors and stock traders are not confidents to the stock. April 19 earning could be a good test for Gold man Sachs future growth and it will affect the overall financial sector stocks.

 

Let’s look at the chart of the stock. Gold man Sachs charts is in the uptrend within in big channel. From neutral point of view GS chart looks bullish or at least neutral. However, if we consider the market recent performance from February 2016, Goldman Sachs (GS) chart   shows relative weakness. Not only GS all the financial sector  charts shows relative weakness.

GS  Chart
GS Chart

GS daily chart shows that stock broke the mini double bottom or W pattern successfully at March 2016. However, after broke the neckline of W, shock did not show strength to move upward. Stock rather pull back while it hit the 50 day moving average. After that stock was making pull back after every small upward   move whereas market made straight upward move during this time. GS was actually moving sideways when S&P 500 Dow Jones index was pushing upside.

Right Now GS chart shows that  stock made a very strong bottom with a slight uptrend. This is very strong bullish pattern for the stock when market is in the down trend. However, since market is right now in the very strong uptrend and stock made this bottoming pattern. This bottom pattern has very small or little value from technician point of view.

If stock beats its expectation what GS did last 3 times out of last 4 earnings, we could see a short run strong move of the stock to the upside. Another point is that stock is moving by rotation, a good earning surprise may initiate a good start for GS and overall financial sectors. GS earning expectation could impacts the overall market movement in April 19 2016.