Let's Make Some Money With Goldman Sachs

Apr. 13, 2018 9:25 AM ETThe Goldman Sachs Group, Inc. (GS)8 Comments

Summary

  • Goldman Sachs earnings have surpassed analysts' estimates for the last three out of four quarters.
  • Goldman Sachs has undertaken laudable cost control measures and activities that ensure a steady growth in the firm's capital activities.
  • The firm's fourth-quarter earnings were remarkable as they recorded a 15.9% rise in the earnings level.
  • The equity share price to rise by 23 to 44 points in the coming weeks.

Goldman Sachs (NYSE:GS) for the last six months has been underperforming when compared to its industry peers. However, the firm's earnings have been very impressive as it has managed to surpass analysts' estimates for three out of last four quarters. On the negative frontier, the firm has been battling several issues off late that range from external factors such as the sluggish level of worldwide economic growth to internal matters such as lower client activity. But overall, due to the firm having a well-diversified business portfolio and a strategy that focuses on capitalizing growth prospects, I believe the firm will continue to strengthen in the days to come. Moreover, the firm has uplifted investor confidence through laudable cost control measures and various capital deployment activities that they have undertaken.

In this article, we shall be undertaking a detailed analysis of the equity's technicals that shall solely focus on the weekly and monthly charts as we are anticipating the share price for the future weeks. Moreover, we shall take a keen look at the firm's last quarterly earnings plus the fundamental reasons why investors should purchase the equity and the risks the equity currently faces.

Technical Analysis:

Goldman Sachs Weekly Chart

On the technical analysis front, I shall focus on the weekly and monthly charts as I am anticipating a rise in the equity price for the near weeks to come. When the equity's charts are analyzed, we can clearly see that the equity shall be rising by 23 points to 44 points in the next few weeks.

On the Japanese candlestick frontier, the equity has just formed a bullish engulfing pattern on the weekly chart. The bullish engulfing pattern fully sticks to the rules of candle charting as it has formed after a downtrend plus the green bullish body is neatly wrapped around the prior red

This article was written by

I am a finance and investment professional whose prime focus is on the British, Indian and American financial markets. I specialise in technical analysis with my key area being Candlestick pattern analysis and Fibonacci analysis.  Academically, I posses two masters degrees one is a Masters of Science in Finance degree from the University of Portsmouth, United Kingdom and the other is a Masters of Commerce degree specialising in Accounting. My Bachelors degree is in Economics, Finance and Banking from the University of Portsmouth, United Kingdom.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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