10/23/2017 – The Goldman Sachs Group (GS) Pattern Search
A member request came through the member's forum for a pattern update on the Goldman Sachs Group (GS). GS was actually one of the stocks I selected as one of my 2 favorites in a recent banking update. More on that update in a little bit.
For now, let's get an update on the long-term trend for GS and then the a look to see if any chart patterns are developing.
The Goldman Sachs Group (GS)
You know the drill. This first chart for the Goldman Sachs Group (GS) is a 5 year monthly candlestick chart to look at longer-term trends for the stock. I want to take another look at the long-term trend before I go to a weekly candlestick chart to look for chart patterns.
I last reviewed a monthly chart for Goldman Sachs Group (GS) in this update "9/21/2017 – My Favorite Bank Stock". That chart was a 20 year monthly candlestick chart though, not my typical 5 year monthly chart. I went to a 20 year chart in the previous update in order to view Anchor Point #1 from the black Fibonacci Extension Tool on the chart in that update. I don't like posting charts where you can't see the beginning of the tool I am using.
On this 5 year chart, I placed a Fibonacci Extension Tool on what I feel is a completed Bullish Impulse wave and its correction. I outlined the 5 waves to the upside with trendlines. The 100% and 161.8% Target Lines from the Fibonacci Extension Tool are the most probable price targets for the next Bullish Impulse wave pattern.
The MACD Histogram is showing its second month of continued buying momentum. It never did reach the zero mark during its correction, a bullish sign for a continued advance after the correction.
I would anticipate a possible short-term consolidation (a month or so) around the resistance area from the Bearish Engulfing candlestick pattern. The resistance area from the candlestick also coincides with the 38.2% Target Line from the Fibonacci Extension Tool. Once the resistance area from the candlestick is broken though, the …...
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I review upside price targets for the company's share price as well as the probability of getting there. The upside price targets are based on a chart pattern identified on its weekly candlestick chart.
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