Stock of the day: Goldman Sachs

The whole of 2021 was pretty terrible for Goldman Sachs. The company declined gradually forming a very handsome channel down formation. The year started with a breakout of the 375 USD support (orange) and that level is now just a very distant memory, but a memory which could soon become a target.

Yes, Goldman Sachs is going steadily down but most recently, it’s managed to create a rather solid support around 280 USD (yellow). The price respected it already in June and July, so we can assume that it’s a key level now.

Yesterday, GS published its Q2 results and they were better than estimated. This was positively received by traders and the price rose to the upper line of the channel-up pattern, which is the closest resistance. The price breaking that resistance would bring us a buy signal. The buy signal would be the change required to treat the 375 USD as a real target and not long-gone history.

As long as the price stays inside of the channel down, the sentiment is negative but should price close above, it will be an invitation to buy.