Here’s your trade on Goldman Sachs $GS – April 29, 2024
Dan Fitzpatrick here at StockMarketMentor.com. Today we’re going to look at Goldman Sachs ( NYSE: GS ).
I’m starting with the weekly chart, I could even go out to the monthly chart because this is what I want to show you. This little bowl pattern, whatever you want to call it. Why don’t we just leave it there, where this was the last high here in 2021? It falls down here and essentially creates a double bottom per se, a little bit higher this time around, than that.
This was years ago, I’m not going to ask the chart to tell me that much, but you can see this was grinding sideways for almost three years. And so we’re finally seeing, again on this weekly chart, I think the 400.00 level is important just because it’s 400.00, it’s an even number, and people like that stuff.
This is a real key part here, where the stock broke out. The volume was about average, not too super high, but not too low either. I would say it’s Goldilocks volume but isn’t that stretching this crap a little bit, it’s just average volume. Then if we look at it on the daily chart going back to the same period of time, this is a lot of chop and slop here, no question about it.
But we do see this kind of bowl here, the same kind of deal like that. And then you could look at this and say, well that’s kind of a handle there. I think we are stretching things a little bit to say that’s a handle, I would say, maybe that’s a handle. Well, maybe that’s stretching things a bit too.
The bottom line though is, do we really care, does it really matter what it is? All I’m saying is, that the stock broke out here, again, above 400.00 is where the real resistance level was. It broke out here, rallied up to 420.00, and came back to test 400.00ish. It fell below there, you could say it’s a slingshot pattern, where it came back a little bit lower than maybe you’d like it to have come underneath the 50. But it was only there for one day.
It came down below the 50-day moving average and stayed a day, and then ran right back up, and ever since then, it’s been going. Look at the green skyscrapers here. The biggest volume bars are green ones. This is institutional buying. I like Goldman Sachs ( NYSE: GS ), candidly, it’s tough to buy it right here. Just because it‘s already run a fair amount, it’s run 10 percent, and for a bank, that’s a lot.
For MicroStrategy ( NASDAQ: MSTR ), that’s in a minute. But for a bank, it’s a lot. I would prefer to maybe take it a little bit on a pullback. But frankly, if you just said, well I want to start a position here, just a small position. I would say, well, I’m assuming you’re more of an investor then and you’re looking at this. Because if you’re a trader, it is better to wait for even just a little pullback, maybe a $10.00 pullback. Just something to get in this kind of trading range from there and there.
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