The board of Goldman Sachs Group (GS) approved a $30B stock buyback program last night but traders and investors seem to be more focused on the trading powerhouse's missteps on new business directions. GS is trading down about 2.5% Tuesday as CEO David Solomon gets grilled with questions from the media.
Let's check out the GS charts.
In the daily bar chart of GS, below, I can see that share prices made a high in November and a lower high in February. Prices are now back below the 50-day moving average line.
The daily On-Balance-Volume (OBV) line has been losing ground since December and points to more aggressive selling. The Moving Average Convergence Divergence (MACD) oscillator shows weakness from November and is barely above the zero line now.
In the weekly Japanese candlestick chart of GS, below, I see a neutral to bearish picture. The shares are trading above the rising 40-week moving average line but recent upper shadows tell me that traders are rejecting the highs.
The weekly OBV line is still in a downward trend from the middle of 2021. The MACD oscillator is above the zero line but the two moving averages that make up the indicator are on top of each other.
In this daily Point and Figure chart of GS, below, I see a downside price target in the $338 area.
In this weekly Point and Figure chart of GS, below, I can see an upside price target in the $458 area. A trade at $334.56 could weaken this chart.
Bottom-line strategy: GS employs many talented individuals and eventually they will get their swagger back, meanwhile, the stock price could suffer for several weeks.
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