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  1. Home
  2. / Investing

Goldman: What's Next on the Charts?

Here's what aggressive traders could do now.
By BRUCE KAMICH
Jul 19, 2023 | 11:10 AM EDT

Investing legend Goldman Sachs ( GS) reported earnings Wednesday morning. Prices dipped and then the shares traded higher in early morning activity. Let's check the condition of the charts and indicators to see if there's a buying opportunity.
 
In this daily bar chart of GS, below, I can see that prices could be forming a large triangle formation since October. Prices have made lower highs and higher lows as prices moved from left to right on the chart. Prices have crisscrossed above and below the 50-day and 200-day moving average lines. The trading volume has been more active since the middle of January.
 
The On-Balance-Volume (OBV) line shows a decline from December to early June suggesting that sellers of GS have been more aggressive than buyers. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line and is not just slightly below it. 
 
 
In this weekly Japanese candlestick chart of GS, below, I see a more promising looking picture. Prices have made a large triangle formation which is relatively easy to pick out on this chart. GS is currently below the 40-week moving average line but that could change quickly.
 
The weekly OBV line is stronger looking than the daily line. The OBV line shows gains from March. The MACD oscillator is below the zero line but poised for a cover shorts buy signal. 
 
 
In this daily Point and Figure chart of GS, below, I can see a potential upside price target in the $386 area. 
 
 
In this second Point and Figure chart of GS, below, I tortured the numbers to try to get the answer I wanted. I used weekly close only price data with a five box reversal filter. Here the software shows a possible downside price target in the $260 area. A trade at $341.28 or higher should improve the odds of higher prices ahead. 
 
 
Bottom line strategy: GS was trading higher Wednesday's after some early morning weakness. Aggressive traders could buy the stock or go long on strength above $340. The $386 area is my price target for now.
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TAGS: Earnings | Investing | Stocks | Technical Analysis | Banking | Financial Services | Brokerages | U.S. Equity

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