GS – Goldman Sachs

While looking at a weekly chart for GS today, I noticed that over the previous 3 weeks it has formed a 3 Weeks Tight Chart Pattern (click on my link below for details about the pattern). Before a pullback commences, GS may have a little more room to the upside with a breakout from the pattern.

If I had to guess, I would anticipate that the upside run continues into earnings. Earnings should be good, but does it turn into a “sell the good news” event? The rally is stretched right now after reaching the 261.8% Target Line. Also, when the MACD Histogram shows that buying momentum is slowing, it is typically an early indicator for a correction or consolidation.

3 Weeks Tight Chart Pattern