GS breaks below Thursday's low
Goldman Sachs Group Inc. (GS) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GS finished the week -5.78% lower at 179.67 after losing $4.42 (-2.4%) today, slightly underperforming the Dow Indu. (-2.24%) following today's NFP report. Today's close at 179.67 marks the lowest recorded closing price since November 4, 2016. Closing below Thursday's low at 180.15, the market confirmed its breakout through the prior session low after trading up to $1.15 below it intraday.
Daily Candlestick Chart (GS as at Dec 07, 2018):
Friday's trading range has been $7.25 (3.94%), that's slightly above the last trading month's daily average range of $5.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GS.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on October 22nd, GS lost -1.37% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Goldman Sachs. Out of 504 times, GS closed higher 54.96% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.16% with an average market move of 0.83%.