GS closes higher for the 3rd day in a row
Goldman Sachs Group Inc. (GS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GS finished Thursday at 165.79 gaining $10.66 (6.87%), slightly outperforming the Dow Indu. (6.38%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 162.21, the stock confirmed its breakout through the previous session high after trading up to $5.45 above it intraday.
Daily Candlestick Chart (GS as at Mar 26, 2020):
Thursday's trading range has been $13.35 (8.54%), that's slightly above the last trading month's daily average range of $13.02. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GS.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, GS gained 1.00% on the following trading day.
Prices are trading close to the key technical resistance level at 170.16 (R1).
Although Goldman Sachs is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 177.56 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Goldman Sachs. Out of 161 times, GS closed higher 55.28% 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 60.87% with an average market move of 0.66%.