GS breaks back above 100-day moving average
Goldman Sachs Group Inc. (GS) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GS ended the week 1.93% higher at 204.68 after surging $4.81 (2.41%) today, notably outperforming the Dow Indu. (1.21%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on July 23rd, GS gained 1.18% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (GS as at Oct 11, 2019):
Friday's trading range has been $3.57 (1.75%), that's slightly below the last trading month's daily average range of $3.71. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GS.
The share managed to close back above the 100-day moving average at 203.81 for the first time since September 30th. After spiking up to 207.29 during the day, Goldman Sachs found resistance at the 50-day moving average at 205.43.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
As prices are trading close to October's high at 209.38, upside momentum could accelerate should the market mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Its common bearish interpretation has been confirmed for Goldman Sachs. Out of 44 times, GS closed lower 63.64% 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 47.73% with an average market move of -0.45%.