Goldman Sachs at a Crossroads

crossroads

Goldman Sachs ($GS), the investment banking powerhouse, has gone through many changes over the years. As bonds became more popular they built their fixed income business. When deals were leading the street they steered human capital toward M&A. With every move the company has been tops in its field. And now the company is at another crossroads. This one is in its stock price.

The chart below shows the price action over the last year. From a high over $218 in June 2015 it fell to a low of $138 and change in June this year. But since that low in June it has been moving steadily higher. The price is now just a few dollars away from confirming a double bottom. A move over the April high would do that. And the price is at a crossroads.

gs

The falling trend resistance has followed the 200 day SMA very closely in 2016. And they are both intersecting the price Tuesday. The price is also back testing the short term high from July after a small pullback. A push through all of these intersecting lines will gather a lot of buying interest in the stock. It has strong momentum to move higher. The RSI is in the bullish zone and rising, while the MACD is positive and about to cross higher. The timing may be imminent. The Bollinger Bands® have squeezed in tight, often a precursor to a move. Are you ready to buy Goldman Sachs?

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