GS closes higher for the 3rd day in a row
Goldman Sachs Group Inc. (GS) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GS ended Wednesday at 204.52 gaining $2.88 (1.43%), slightly outperforming the Dow Indu. (1.39%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (GS as at Aug 05, 2020):
Wednesday's trading range has been $1.80 (0.89%), that's far below the last trading month's daily average range of $4.90. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GS.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 207.42 (R1).
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test July's nearby low at 195.00.
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 164 times, GS closed higher 56.10% 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 60.37% with an average market move of 0.71%.