Critical Support Test Challenge for Goldman Sachs GS
Wed, Jul 19, 9:51 AM ET, by Corey Rosenbloom
Goldman Sachs (GS) reported positive earnings that beat expectations yesterday… yet the stock fell.
Shares now face a critical “Make or Break” support challenge at a key confluence level.
What is it and what’s the short-term trade from here? Let’s plan it:
As a long-term trader, it still frustrates me to no end to see a stock beat earnings yet collapse lower.
That’s one reason I focus so much of my trading on technical analysis – charts make sense!
Anyway, earnings aside, the chart reveals Goldman Sachs (GS) shares to be at a critical confluence support pivot.
We’re specifically seeing the overlap of the rising 200 day SMA (red) with the lower rising “flag” trendline of a rising parallel trendline channel (yellow highlight).
Ideally shares bounce here and trade the bullish pathway toward the $230 level again.
However, traders should be ready to short-sell (or take stops) on a breakdown/breakout beneath this support level which could collapse shares quickly toward the $210 per share prior low from June.
Even if you’re not trading this stock at this juncture, it should be fun to watch what happens next for your educational reference.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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