After its reversal back to the upside in the end of December last year, the Goldman Sachs stock (NYSE: GS) initially had a good run higher, but from around the end of July it started moving sideways, roughly between the 193.90 and 222.15 levels. Last week, the stock managed to test the lower bound of that range, from which it rebounded and pushed slightly up. Overall, on the broader aspect of it, the price could continue moving sideways for a while more and given that it rebounded from the lower end of the range, we will aim for slightly higher levels within the range, at least for now.
A push back above the 202.45 barrier, marked by the high October 7th, could attract a few more buyers into the game. GS may then rise to the 206.70 obstacle, a break of which would place it above all of its daily EMAs and send it to the 210.50 zone, marked by the high of September 27th. Initially, the stock might stall around there, or even correct back down a bit. But if it remains above at least its 200-day EMA, then we may see another upmove, possibly bypassing the 210.50 hurdle and targeting the 217.90 level, marked near the high of September 19th.
For now, it would be difficult to rely on our oscillators, as they are giving us slightly mixed signals. The RSI, although below 50, is pointing to the upside. The MACD is below zero and its trigger line, but, unlike the RSI, is currently flat.
If eventually the pair decides to drop below the lower bound of that range, at 193.90, this might spook new investors and could force a few existing ones to liquidate some of their existing positions. This may bring the price to the 189.20 area, a break of which might clear the path to the 180.70 level, marked by the lowest point of June.
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