economy
This banking giant is setting up for a breakout. What levels to watch
Frank Cappelleri breaks down the charts on Goldman Sachs.
TL;DR
- The financial sector (XLF ETF) is consolidating and holding above its 50-day moving average, potentially attracting investors.
- Goldman Sachs (GS) shows improving relative strength within the financial sector and has reclaimed its 50-day moving average.
- GS is forming a potential inverse head-and-shoulders pattern, with a breakout target near 1,110 and a stop-loss below 888.
- A bullish setup is also observed in GS's moving averages, with the 20-day crossing above the 50-day while both are above the 200-day.
- Historically, similar moving average crossovers for GS have led to subsequent upside.