For the last three months, Goldman Sachs (GS) has been steadily working its way back up the rankings in the SIA S&P 100 Index Report, starting in the red zone and returning to the Green Favored Zone yesterday for the first time since last November.
A new recovery trend appears to be underway in Goldman Sachs (GS) shares. After spending the first half of the year under distribution and declining in a falling channel, GS bottomed out in June with $275 successfully holding as support through several tests. In July, the shares regained $300, retook their 50-day average and snapped a downtrend line, all combining to signal renewed accumulation. This month, GS broke out over $325, completing a base and confirming the start of a new uptrend.
Initial upside resistance may appear near $345, then $375 where a measured move from the base coincides with previous support and resistance. Initial support moves up to $325.
After spending the first half of this year in a downward trend, Goldman Sachs (GS) shares appear to have bottomed out and launched into a new recovery trend. Since bottoming out in June, the shares have consistently been climbing and this month they completed a bullish Double Top breakout in addition to snapping out of a downtrend.
Currently the shares are testing initial resistance near $342.85 where a breakout would complete a bullish spread double top pattern and confirm the start of a new uptrend. Should that occur, next potential resistance may appear near $371.10 or $386.10, based on previous column highs and lows. Initial support appears near $310.50 based on a 3-box reversal.
With a bullish SMAX score of 6, GS is exhibiting strength against the asset classes.
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