GS breaks back above 200-day moving average
Goldman Sachs Group Inc. (GS) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GS finished Monday at 208.88 gaining $3.32 (1.62%), significantly outperforming the Dow Indu. (0.04%). Today's close at 208.88 marks the highest recorded closing price since June 16th. Trading $3.98 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. 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 Jul 13, 2020):
Monday's trading range has been $5.98 (2.86%), that's slightly below the last trading month's daily average range of $6.76. 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 lower than usual for GS.
Four candlestick patterns are matching today's price action, the Bearish Doji Star, the Gravestone Doji and the Northern Doji which are known as bearish patterns and one neutral pattern, the Doji. The last time a Northern Doji showed up on May 22nd, GS actually gained 8.96% on the following trading day.
The stock managed to close back above the 200-day moving average at 205.57 for the first time since July 6th.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Goldman Sachs. Out of 67 times, GS closed higher 52.24% 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 62.69% with an average market move of 1.91%.