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Goldman Hammered On Downgrade But Sees Some Light

|Includes: Goldman Sachs Group Inc. (GS), JPM

Goldman Sachs Group, Inc. (NYSE:GS) is taking a beating today on the back of an analyst downgrade. Richard X. Bove of Rochdale Securities cut his price target and moved the stock to a sell rating. This was all on the back of worries the Justice Department will come down hard on Goldman Sachs any day now. Investors are running for cover as the stock is trading at $140.74, -7.14 (-4.83%). While things look extremely grim, Goldman is approaching some mega support levels. The first support happens to reside at a key gap fill from September 2nd, 2010. This level is at $139.50. The second level of support is at $136.00 and is a key double bottom from August 31st, 2010. Both these levels serve to be solid swing trading pivot points. Swing trading level is an art form using technical analysis and support, resistance points. A swing trade can last from one day to a week or two.

Other financial stocks are also taking a hit today in sympathy. With the market around the flat line, JPMorgan Chase & Co. (NYSE:JPM) is trading at $43.72, -0.51 (-1.15%) while Bank of America Corporation (NYSE:BAC) is trading at $12.17, -0.08 (-0.65%)

Gareth Soloway