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Will Goldman Sachs Fall to $100?-Part 2

|Includes: Goldman Sachs Group Inc. (GS)

Take a look at the 5 minute chart again. The stock was wedged below Friday’s close before breaking through in an attempt to move higher. That rally did fizzle once it reached the same resistance levels as Friday as seen on the chart
GS 5 minute chart

Heavy volume selloff on Friday followed by a lighter volume bounce isn’t exactly bullish. The bleeding has stopped for now or at least until earnings come out and more is learned from their conference calls on Tuesday. Even if Goldman puts out stellar earnings I can’t picture too much panic buying up into new highs before we learn more about how wide this investigation broadens and how many countries and global law firms file lawsuits. Regardless of all the speculation the important thing is how the stock reacts to news. As unlikely as it may seem, if the stock rallies with heavy volume you have to go with it. Bottom line the GS reaction to its earnings will set the tone for the rest of the market



Disclosure: No positions