• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Goldman Sachs' Technical Prospects Have Brightened

Prices could test the declining 50-day simple moving average line very soon.
By BRUCE KAMICH
Jan 16, 2019 | 08:56 AM EST
Stocks quotes in this article: GS

Goldman Sachs Group Inc. (GS) is trading up about 3% in pre-market activity Wednesday as traders and investors react to its latest earnings report. I will leave others to go over the top and bottom lines and all those tedious footnotes. Over my pay grade as they say. Instead, let's check out the charts and indicators this morning.

We last looked at GS in late December and things are looking better for the short-run.

In the daily bar chart of GS, below, we can see some positive signals. Prices could test the declining 50-day simple moving average line Wednesday or very soon. A close above the 50-day line will be a positive for some technically oriented traders but I like to see the slope of this indicator turn positive. The 200-day moving average line is bearish and is up above $220 right now.

The volume of trading was heavy in late December and may signal that some longs liquidated while other investors used the selling pressure to go long. The daily On-Balance-Volume (OBV) line turns up from the December nadir and shows a shift to aggressive buying from months of aggressive selling.

The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to a cover shorts buy signal near the end of 2018 and is now approaching the underside of the zero line. A move above the zero line will be a buy signal.

In the weekly bar chart of GS, below, we can see that prices are still well below the declining 40-week moving average line. The weekly OBV line shows a decline from early 2018 and a recent uptick into January of 2019.

The weekly MACD oscillator has begun to narrow and could soon cross to the upside for a weekly cover shorts buy signal.

In this Point and Figure chart of GS, below, we can see a long decline and an upside price target around $232.

Bottom-line strategy: GS should post a good move to the upside Wednesday and could rally to nearby resistance in the weeks ahead. Resistance begins around $210 and extends up to $240.

(Goldman Sachs is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells GS? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long GS.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Banking | Financial Services | Brokerages | Stock of the Day

More from Stocks

Buying Momentum SNAPs Under Weight of Recession Worries

James "Rev Shark" DePorre
May 24, 2022 4:26 PM EDT

The Dow held its own, but under the surface it wasn't so pretty as the correction churns on.

An ETF for When You're Over ESG

Mark Abssy
May 24, 2022 4:05 PM EDT

Constrained Capital ESG Orphans ETF bets that ESG trends have put undeserved pressure on fossil fuel, nuclear energy, weapons, alcohol, tobacco, and gaming companies.

Meta Platforms: I'm Looking at the Charts, Not the Headlines

Bruce Kamich
May 24, 2022 2:30 PM EDT

Buyers have been attracted in the $180 area in March, April and now.

Boston Scientific Could Be Wicked Good in This Kind of Market

Brad Ginesin
May 24, 2022 2:13 PM EDT

Here's why this healthcare stock is a potential port in the storm for investors.

Bettin' a Buck on Devon

Mark Sebastian
May 24, 2022 1:39 PM EDT

Here's where I see Devon Energy going and how to play it.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login