Goldman Sachs bulls back in play after reaching a 2½-year low.
Goldman Sachs stock price has been trading upwards over the last couple of weeks after the rebound on the 151.50 support level. The short-term technical indicators are endorsing the upside view. In the daily timeframe, the Relative Strength Index (RSI) is sloping upwards approaching the threshold of 50, while the MACD oscillator holds above its red-trigger line in the negative area, suggesting more strength in the market.
Upsides moves are likely to find resistance at the 23.6% Fibonacci retracement level of the down-leg from 275 to 151.50, around 180.77 before being able to hit the 189 resistance. Rising above this area would help shift the focus to the upside towards the 50-day simple moving average (SMA) near 192.50.
However, if the bears retake control and the price plunges again, it would re-challenge the two-and-a-half-year high of 151.50. Further negative extensions could send prices until the next support level of 138 as there is no significant obstacle before that.
Overall, in the bigger picture, the stock has been trading within a falling movement over the last ten months. In case of a successful close above the 23.6% Fibonacci, this would turn the bias to bullish in the very short term.
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