Don't Ignore This Chart!

Goldman Goes for a Breakout $GS


Goldman Sachs (GS) appears to be ending its correction as it bounces off the rising 200-day moving average. The chart shows GS hitting a 52-week high in March and then declining into June. I consider this a correction because the stock was entitled to a pullback after a massive advance and it retraced around 38.2% of the prior move. Goldman found support near the rising 200-day SMA and turned up the last six weeks with a move back above its 50-day SMA. A move above 230 would break a resistance zone and argue for a challenge to the March high. The indicator window shows the price relative (GS:SPY ratio) turning up as well and close to a breakout. As the highest-priced stock in the Dow, Goldman Sachs carries the most weight and a breakout in this stock would be positive for the Senior Average. 

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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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