NFTRH+; Revenge of the Giant Squid

A look ahead of sorts on Goldman Sachs, which has broken above resistance.

GS was a bearish highlight nearly a year ago due to it’s H&S top and loss of the weekly EMA 70.  This week, in definitively breaking above the old neckline resistance (pending today’s trading), it is a bullish one.  A sort of reverse of the BSX situation, which had been a bullish NFTRH+ highlight but was recently shown as a bearish one (I covered that short for a small profit in order to increase index shorting rather than gamble on BSX’s earnings report).

Obviously, the rising interest rate atmosphere that benefits the standard banks is also helpful to the financials and investment banks.  So keep an eye on Treasury yields.  If all remains as expected on the macro fundamental backdrop (i.e. no deflationary impulse) GS targets 197 off of its double bottom (‘W’) pattern.  Let’s see if 165 can get tested.

goldman sachs (gs) weekly chart

Buy Target:  165 area would be optimal, on a pullback retest of the EMA 70.

Sell Target:  197 or anywhere lower that you’d like to realize profit.

Stop Loss:  Below 165 to suit risk tolerance, but below 155 strongly advised.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.