Goldman Sachs Triangle Break Confirmed
Last week, I mentioned the consolidation triangle which was forming in Goldman Sachs (GS), and this week, it appears the downside resolution of that pattern is underway.
- Clear triangulation (consolidation) pattern broken to the downside
- Volume is confirming (rising) this break
- Momentum (oscillator) also triangulated, and has broken further to the downside (momentum leads price)
- If Financials lead the stock market (as they typically do), then this is an extremely negative development
Of potential hope, sometimes break from a triangle consolidation to one side and then ‘fail’ and reverse to break out the other.
However, given the news and economic conditions that are developing, that prospect seems unlikely.
Goldman reported earnings today, and the traders’ reactions to those reports were clearly negative.
With the overall market testing prior lows, this is not a positive sign at all for the broader markets.