Make or Break Support Bounce in Goldman Sachs GS

Jul 1, 2016: 12:49 PM CST

With the Brexit chaos, shares of Goldman Sachs (GS) plunged to a critical support level and are now bouncing up away from that essential pivot.

Let’s pinpoint this level and note the price pathways to trade into the near-term future.

Our clear pivot-price level is the $140.00 per share support.  Note the yellow highlight above.

We saw a reversal up away from this level in mid-2013 and early 2016 and now it appears that we’re seeing a similar reversal up away from the $140 pivot price.

The weekly chart highlights $155.00 as an initial upside target or even $165.00 as a higher target.

Keep the weekly chart target levels (moving averages) in mind as you view the Daily Chart:

Like February, we’re seeing a positive momentum divergence ahead of another snap-rally up away from $140.00.

The Daily Chart gives us additional insight and trade planning; the weekly chart gives us the trend and bigger targets.

Right now, we’re focusing on the $150.00 target level.

A bullish breakout pathway opens above $152.50 toward $165.00.

Otherwise another retracement down could trigger on a sudden movement down away from $150.00.

Note these key pivot levels and plan your swing or intraday trades on the departure from these pivots.

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Corey Rosenbloom, CMT

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1 Comment

One Response to “Make or Break Support Bounce in Goldman Sachs GS”

  1. Badami Says:

    We have seen market stabilizing over the next few weeks after PM been declared, but still there is plenty of room from where we can work with. I believe we will still see plenty of pushing happening over these things and that’s where we got to be really good and make sure we gain plenty. I never worry about anything especially to do with OctaFX broker where they have epic daily market news and analysis service, it’s simple to follow yet highly effective.