GS pushes through key technical resistance level
Goldman Sachs Group Inc. (GS) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GS ended the month 0.58% higher at 197.62 after gaining $4.15 (2.15%) today, notably outperforming the Dow Indu. (0.85%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 193.90, Goldman Sachs confirmed its breakout through the previous session high after trading up to $4.51 above it intraday.
Daily Candlestick Chart (GS as at Jun 30, 2020):
Tuesday's trading range has been $4.79 (2.47%), that's below the last trading month's daily average range of $6.90. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GS.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a White Candle showed up on June 25th, GS actually lost -8.65% on the following trading day.
Buyers managed to take out the key technical resistance level at 195.15 (now S1), which is likely to act as support going forward.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Goldman Sachs. Out of 321 times, GS closed higher 51.09% 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 54.52% with an average market move of 0.45%.