2022/09/15 (070) Technical Analysis

The S&P500 Index Recovered Above The 2007 Highs,
Before The Lehmann Brothers Crash In The Following Year 2008:
That´s Why long Goldman Sachs 4XSetUps – Thank U God 4 This 2nd Chance!

Despite lingering fears that the US economy is on the brink of recession,
Goldman Sachs shares have also fared better than the broader market so far in 2022. Goldman Sachs stock fell just 14.6%, while the S&P 500 lost 18%.

The shares of the New York-based investment bank have made strong gains in recent weeks and have risen by an impressive 17.5% since their 52-week low of USD 277.84 in mid-July. That’s despite the stock trading more than 20% below its November 2021 peak ($426.16) despite the recent trend reversal. The Wall Street powerhouse, which offers consumer banking, investment banking and wealth management services, has a market cap of $106.2 billion.

Why This Insider Sell Out? What fears Dow He have About The Future?
Or Does He Only Cash Up Because He Needs Private Capital, Which has Nothing To Do With The Operational Business Of The Bank?

I hope so! I don`t know? However, fact ist that Global Treasurer Philip Berlinski sells a total of 8,000 shares at an average price of $348.62. The insider received approximately $2.79 million from the sale of those shares. Goldman Sachs recently reported revenue of $11.86 billion for the second quarter of fiscal 2002, down 23% year-on-year and undercutting the consensus of $10.96 billion.

Goldman Sachs is a leading global investment banking company, with operations divided into Investment Banking (20% of net revenues), Global Markets (45%), Asset Management (20%) and Consumer and Wealth Management (15%) segments. In the past ten years, Goldman Sachs shares have posted a significant price gain of +14.0% p.a. on average. A $10,000 investment should, more or less, rise to $11,400 within 12 months; if the Goldman Sachs share should stick to the percentage average development of the last 10 years!? And that regardless of your leverage, in the form of CFD derivatives?! The yield triangle (in the chart of the next side) shows the average annual returns of Goldman Sachs stock over various investment periods. The year of purchase is shown on the horizontal axis and the year of sale on the vertical axis. So that we can learn to perceive that the Goldman Sachs share is a speculative 4X set-up in a long-term comparison. Compared to LVMH stock yesterday. Let alone VW shares the day before yesterday.The stock of the American bank Goldman Sachs recovered above average in the last few trading days. Better than the US stock market! But does this recovery still have further potential or is it imminent to end? I assume that prices will continue to rise, both for Goldman Sachs shares. However, not at this pace. Which is why I formulated the target price for the second quarter of 2023. So that we don’t have to enjoy the daily course, the share, like gamblers craving for profit every day. Although I too, when looking at the chart, and or also because of the current environment – rising interest rates and also when looking at the financial sector in the USA (in the form of the technical analysis, as also already presented in the Financial Market 4XSetUps this week) that mouth watering. And not just with his mouth wide open. But also with big eyes. Why? Aeben due to the current technical chart of the share! Goldman Sachs stock climbed to its current all-time high of $426.15 on November 2, 2021. So there was a major correction afterwards. So that the share then almost fell back to the old all-time high from March 2018 at USD 275.31 – and has since recovered.The share formed a small double bottom slightly above it and moved almost to the log. 61.8% retracement of the move down from the all-time high. That retracement sits at $362.07. After a reset to just below the log. 38.25 retracement of the last move higher, the level has been rallying for the past few days and marginally climbed above the short-term downtrend on Friday. In doing so, it tore an upward gap between USD 335.81 and USD 337.03. So that the short-term and/or medium-term chart picture makes me quite optimistic.

So let’s concentrate primarily on the price action of the Goldmann Sachs share. If the breakout of the short-term downtrend is confirmed, then the rally of the past few days could continue. The next hurdles would be the resistance at $349.05 and later the high at $358.62 or the log. 61.85 retracement at $362.07. However, should the stock fall back below last Friday’s gap, selling pressure could return. In this case, it could face levies towards $308.97-306.29. Anyway, hopefully we’ll stick with it for a long time. Because the bulls have, just since last Friday, created a chance for a medium-term recovery. What we will observe regularly, starting today, in the coming weeks…