The trading in Goldman Sachs Group (GS) has seen increased volatility in recent months. If you look back at the up and down swings in GS back in April through August and you compare it to the past two months you should see what I mean.
We reviewed the charts of Action Alerts PLUS holding GS in January, and I wrote that "GS has weakened recently but there is chart support nearby. GS is probably not going to weaken significantly but a period of softness and sideways price action is likely what we will see in the weeks and months ahead." Looking back with the benefit of 20/20 hindsight I can see that GS rallied into late January and then had a sharp decline in February. Prices made a quick retest and then rallied back to the late January zenith. What now? Let's check the updated charts and indicators.
In this daily bar chart of GS, below, we can see that prices have crossed above and below the 50-day moving average line the past month. The slope of the 50-day line looks like it is starting to crest. The daily On-Balance-Volume (OBV) line has not been supportive and has been in a narrow sideways pattern for the past three months.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for most of the time since September but lately it is just "hanging on" above the zero line suggesting that the strength of the uptrend has weakened.
In this weekly bar chart of GS, below, we see a mixed picture with our indicators. Prices are above the rising 40-week moving average line but the weekly OBV line has weakened the past two months and the weekly MACD oscillator looks like it is crossing to the downside for a take profits sell signal.
In this Point and Figure chart of GS, below, we can see a downside price target of $233. Not a big downside target but it would break the most recent lows on this chart.
Bottom line: I am cautious on the next sustained move for GS. The trend is up but the indicators are mixed. A move above $275 looks bullish and a decline below $240 looks bearish.