The short-term price charts and indicators of Goldman Sachs Group Inc. (GS) have improved in the last five weeks, but is the correction over and has there been enough buying to tell us that the bull is back? Let's go chart by chart to see what the technical approach can tell us today.
In this daily bar chart of GS, below, we can see that prices topped out in January-March in the $270-$275 area. Prices weakened from March to late June/early July. Last month GS rallied above the 50-day moving average line and the line has flattened. Prices have moved above the June high but remains below the declining 200-day moving average line. The daily On-Balance-Volume (OBV) line turned down in April and fell to a July low. A bearish OBV line happens when sellers of a stock are more aggressive than the buyers. The OBV line has edged slightly higher since the middle of June. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line which is bullish but the two moving averages that make up this indicator are on top of each other and could down or up depending on the price action ahead.
In this weekly bar chart of GS, below, we see a mixed picture. Prices are below the still bearish 40-week moving average line. The weekly OBV line shows a decline from January to late June and then improvement in July. The weekly MACD oscillator is close to a cover shorts buy signal.
In this Point and Figure chart of GS, below, we can see a downside price target of $213.
Bottom line strategy: The short-term picture of GS has improved in recent weeks but the weekly chart and the Point and Figure chart tells me to remain cautious for now.