Goldman Pulls Back After RallyingGoldman Sachs broke out to record highs earlier this month, and some traders may think the investment bank will keep running.
The first pattern on today’s chart is the large candle on October 15 after quarterly results beat estimates.
Next, you have that session’s low at $515.51. Also notice the price zone around $510-515 where GS peaked in August and September. Consider how the stock pulled back to hold those levels on Tuesday and Wednesday. Has new support been established above previous highs?
Third, MACD is rising.
Finally, the higher monthly lows in August, September and October are potentially consistent with a long-term uptrend. (Some traders may even view them as part of an ascending triangle.)
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