SIA Chartsā relative strength rankings assist investors in identifying stocks that are outperforming their peers or index benchmarks, typically indicative of positive investor expectations for a company or sector. The rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing. Last week we highlighted a US Financial name, Morgan Stanley. Today we are going to highlight another US Financial name exhibiting outperformance of late. To illustrate this, letās review the shares of Goldman Sachs Group Inc.(GS).
Goldman Sachs Inc. (GS) recently re-entered the Favored Zone of the SIA S&P 100 Index report on May 13th at a price of $603.81. The shares are showing strong relative strength moves up the SIA S&P 100 report gaining 1 spot in the last week, 8 spots in the last month, and 42 spots in the last quarter; exemplifying the consistent money flow increases in the shares over the past little while. Currently the shares reside in the 6th spot out of 103 positions in the report.
The attached candlestick chart of Goldman Sachs shows that the shares traded in a three-year sideways consolidation range from mid-2021 to spring 2024. We also see the shares find a strong layer of support at just above the $250.00 price level. An uptrend began in spring 2024, marked by a steady pattern of higher highs and higher lows, and ultimately peaked in February of this year at around $650.00. A brief but sizeable pullback occurred later in the first quarter of this year when the markets experienced their jitters. Since stabilising in April, however, the shares have reversed trend and surged past their previous February high of around $650. They are now trading in all-time-high territory, well above $650 and into the $700 range.
The benefit of using Point and Figure charts is that they allow for more precise identification of upcoming support and resistance levels. On the Point and Figure chart, using a 2% scale for investment-grade analysis, we observe that the shares have surpassed their early-year high at the prior resistance level of $659.06. Currently, the shares are in a very strong rising column of Xās, lasting 22 boxes without even a 3-box reversal. Based on a measured move, the next resistance currently stands at $742.21. On the downside, if a pause materialises, support is expected at the 3-box reversal level of $659.06, and below that at $596.93. The shares currently exhibit a bullish spread Double Top pattern and, with an SMAX score of 10 out of 10, are demonstrating very strong near-term strength relative to other asset classes. Also of note, GS is classified within the SIA Financial Services sector, which holds a āFavouredā rating in the SIA Stock Sectors report, indicating a positive sector backdrop for the name.
The Goldman Sachs Group Inc. is a leading global investment banking firm, with activities organised into investment banking (20% of net revenue), global markets (45%), asset management (20%), and consumer and wealth management (15%) segments. Approximately 60% of the companyās net revenue is generated in the Americas, 15% in Asia, and 25% in Europe, the Middle East, and Africa. In 2008, Goldman reorganised as a financial holding company regulated by the Federal Reserve System.
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