Goldman Sachs Earnings Tomorrow – Ready for a Bullish Breakout?Goldman Sachs (NYSE: GS) is shaping up for a potential bullish move ahead of its earnings report tomorrow (January 15) before the market opens. With the stock bouncing off key support levels and positive momentum indicators, a strong earnings surprise could trigger further upside toward my targets.
Let’s break down the setup:
💼 Trade Setup for Swing Trade:
🔹 Entry Price: $569 (current price)
🎯 Take Profit 1: $600
🎯 Take Profit 2: $625
🎯 Take Profit 3: $650
🛡️ Stop Loss: $540 (below key support)
📈 Why Am I Bullish on Goldman Sachs?
1️⃣ Earnings Catalyst (January 15, Pre-Market)
Goldman Sachs will release its Q4 2024 earnings tomorrow before the market opens. Historically, the bank has outperformed expectations, particularly in trading revenues and fixed income.
Given the recent recovery in capital markets, there’s a good chance Goldman will report higher-than-expected revenues, which could trigger a sharp rally.
2️⃣ Technical Reversal in Play
GS is bouncing off a key support zone near $550, which has acted as demand multiple times in the past. The RSI is rising from oversold levels, and Stochastic has turned bullish, suggesting momentum is building.
A break above $575 would confirm the reversal and open the door to higher targets at $600, $625, and $650.
3️⃣ Valuation and Undervaluation
Goldman Sachs is trading at a P/E ratio of 16.8, which is cheaper than peers like JPMorgan and Morgan Stanley. This leaves room for valuation expansion, especially if the bank delivers positive earnings surprises.
With recovering trading volumes, M&A activity, and IPO deals, GS could see a significant boost to revenue and profitability.
💡 Final Thoughts:
Goldman Sachs is setting up for a potential bullish move, with a solid technical and fundamental backdrop. The upcoming earnings report is a key catalyst that could trigger strong upside if results beat expectations.
I’m targeting $600, $625, and $650, while managing risk with a stop loss at $540. Let's see how it plays out!
💬 What do you think? Are you bullish on Goldman Sachs too? Drop your thoughts in the comments! 👇
