GS finds support at 20-day moving average
Goldman Sachs Group Inc. (GS) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, GS finished the week 1.55% higher at 198.26 after gaining $0.79 (0.4%) today, slightly underperforming the Dow Indu. (0.54%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GS as at Mar 15, 2019):
Friday's trading range has been $2.00 (1.01%), that's below the last trading month's daily average range of $3.42. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GS. Prices continued to consolidate within a tight trading range between 195.69 and 198.97 where it has been caught now for the whole last trading week.
Four candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and two bearish patterns, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on January 24th, GS actually gained 1.49% on the following trading day.
After trading as low as 196.85 during the day, the share found support at the 20-day moving average at 196.95. Goldman Sachs found buyers again today around 196.85 for the third trading day in a row after having found demand at 196.70 in the prior session and at 196.52 two days ago.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 198.93 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 195.69 where further sell stops could get triggered. With prices trading close to this year's high at 203.29, upside momentum might accelerate should the stock be able to break out to new highs for the year. Further buying could move prices higher should the market test February's close-by high at 201.50.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Goldman Sachs. Out of 10 times, GS closed lower 60.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 70.00% with an average market move of -1.30%.