Dick Bove Stimulated Goldman’s Bottom
- Posted by Greg Harmon
- on May 24th, 2011
Dick Bove’s comments about Goldman Sachs (ticker: $GS) did the stock a favor in helping it find a bottom faster. As seen in the chart below it is turning higher after confirming yesterday’s Piercing candle today and with a rising Relative Strength Index (RSI) and a waning Moving Average Convergence Divergence (MACD) indicator. Resistance will come at the 139.50-140 area next, and then the 146.32-147.50 area.
But what about the other brokerage stocks? Let’s take a look at Lazard (ticker: $LAZ), Morgan Stanley (ticker: $MS) and Jefferies (ticker: $JEF). The first one Lazard, attached itself to Goldman’s bottom when it exposed itself outside of the Bollinger bands yesterday and is trying to
ride it higher with its own Piercing candle. It will reach resistance first at 38.48 and then 39.15-39.25. It also has a RSI that is now crooking higher, but the MACD is not yet turning so watch that it does not fall lower under 37.
Morgan Stanley is trying to latch on to Goldman’s bottom as well but is having a harder time of it. The RSI is still pointing lower and the MACD increasing slightly negative. It did print a Hammer potential reversal candle Tuesday, but it needs to hammer that home above 23.80 resistance Wednesday to confirm it wants more. Above that resistance can be found at 24.50, 25 and 25.57. Support can be found at 23 and 22.23 if it fails to confirm.
Jefferies needs to place a call to Dick Bove to have him stimulate a bottom for them. It lost triple bottom support at 22.50 Tuesday and is now looking to hold on to its bottom at 22.00 as support. If it loses its grip then the next support level is 21.15 and then 19.90. With the RSI sloping lower and the MACD increasing negative it is looking like the path lower is greased for passage.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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