GS closes within prior day's range after lackluster session
Goldman Sachs Group Inc. (GS) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
GS finished the week -2.29% lower at 197.43 after losing $1.71 (-0.86%) today, slightly underperforming the Dow Indu. (-0.38%). 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 May 17, 2019):
Friday's trading range has been $2.79 (1.42%), that's below the last trading month's daily average range of $3.43. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GS.
Prices are trading close to the key technical support level at 195.69 (S1). Prices are trading close to the key technical resistance level at 199.10 (R1). After having been unable to move lower than 196.62 in the prior session, Goldman Sachs found buyers again around the same price level today at 196.30. The last time this happened on May 8th, GS gained 0.34% on the following trading day.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 200.00 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 193.42 where further sell stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Goldman Sachs. Out of 500 times, GS closed higher 53.00% 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 three trading days, showing a win rate of 53.60% with an average market move of 0.08%.