GS surges 1.74% closing $3.70 higher
Goldman Sachs Group Inc. (GS) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
GS ended Wednesday at 215.94 surging $3.70 (1.74%), significantly outperforming the Dow Indu. (0.53%). This is the biggest single-day gain in over three weeks. Closing above Tuesday's high at 215.43, the share confirmed its breakout through the prior session high after trading up to $1.56 above it intraday.
Daily Candlestick Chart (GS as at Dec 04, 2019):
Wednesday's trading range has been $4.61 (2.16%), that's far above the last trading month's daily average range of $2.92. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GS.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 50-day moving average at 212.72. When this moving average was crossed above the last time on October 14th, GS gained 0.31% on the following trading day. Prices are trading close to the key technical resistance level at 217.09 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 219.73.
While Goldman Sachs is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Goldman Sachs. Out of 73 times, GS closed higher 56.16% 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 58.90% with an average market move of 0.77%.