GS is hanging around the upper resistance level of the weekly broadening price pattern … the longer it hangs around this level it is in effect telling us that it is not going to “reject” that level/resistance level. That means odds are growing that GS breaks out to the upside.
GS – Weekly Chart #1
Interest rates are pushing higher (to see my blog on the bonds from yesterday click here), and if that move is real, then financials should see some type of bigger rotation from the big money players in the market.
GS – Weekly Chart #2
Like mentioned in the first chart, the longer price hangs around these current levels, and no increase in selling pressure arises, then price is likely to go higher.
GS – Daily Chart
The daily chart’s trend strength histogram has pulled back into the Chop Zone and the consolidation in price is likely complete on the daily time frame. Since price has held up reasonably well, I would expect price to begin another attempt to push higher here soon.
GS – 195 Minute Chart
The 195-minute chart is in a perfect spot to begin building a long swing position here. I plan to buy some of the June 2018 $240 calls today as well as starting to buy an outright long position in GS stock.
The next quarterly earnings report is set for next week – pre-market on Wednesday, January 17th.
Cheers … Leaf_West