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How To Trade Goldman Sachs After Reported Earnings

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Goldman Sachs’ stock popped after reporting better-than-expected third-quarter earnings results. Here’s how to trade the investment banking giant now.
(Photo by Jaap Arriens/NurPhoto via Getty Images)
Investment banking giant Goldman Sachs Group (GS) is a member of the Dow Jones Industrial Average. The company reported third-quarter earnings before the opening bell on Tuesday. The stock popped on better-than-expected results.
Goldman closed Monday at $215.22, down 15.5% year-to-date and in bear market territory, 21.8% below its all-time intraday high of $275.31 set on March 12. The stock set its 2018 low of $210.95 on October 11.
The daily chart for Goldman Sachs
Courtesy of MetaStock Xenith Courtesy of MetaStock Xenith
Goldman has been above a “death cross” since May 29 when the 50-day simple moving average fell below the 200-day simple moving average to indicate that lower prices lie ahead. Since this chart negative remains in place as the stock set its 2018 low of $210.95 on October 11. The 200-day simple moving average is now at $242.28. The horizontal line is my semiannual risky level at $252.27.
The weekly chart for Goldman Sachs
Courtesy of MetaStock Xenith Courtesy of MetaStock Xenith
The weekly chart for Goldman has been negative since the week of September 28. The stock is below its five-week modified moving average of $225.72 and is just above its 200-week simple moving average at $207.58, which is also the “reversion to the mean,” last tested during the week of October 21,2016 when the average was $170.84. The 12x3x3 weekly slow stochastic reading is projected to decline to 25.74 this week, down from 30.96 on Oct. 12.
Given these charts and analysis, buy Goldman on weakness to my annual and monthly value levels at $205.92 and $203.95, respectively, and reduce holdings on strength to my semiannual risky level at $252.27.

I am CEO and founder at Global Market Consultant, Ltd., and an expert contributor to TheStreet.com. I hold an engineering degree from Georgia Tech and a masters degree from Brooklyn Poly and have 40-plus years experience as a trader, trading manager and research analyst at…
Richard Suttmeier, a former Treasury bond trader, has 45 years experience in the financial markets. He’s an engineer by education with a master of science degree.

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