Technical Analysis – Goldman Sachs stock violates range area to the upside

Melina Deltas, XM Investment Research Desk

Goldman Sachs stock had been consolidating since January but in the previous week, the price successfully surpassed the 210 resistance and the 50.0% Fibonacci retracement level of the downleg from 275 to 151.50 near 213.23, violating the range area to the upside. The sideway move held within 180.60 and 210 levels.

The MACD is picking up speed in positive territory, suggesting a bullish bias for the short term. However, in the very short-term, downside corrections cannot be ruled out as the RSI is currently increasing positive momentum around its 70 overbought mark.

On the upside, the price could attempt to overcome the 50.0% Fibonacci of 213.23 and touch the 61.8% Fibo of 227.87. Clearing the latter, more gains could follow.

A reversal to the downside, could find immediate support at the 210 level, while lower the 38.2% Fibo, which coincides with the 200-day simple moving average (SMA) at 198.60 could be next in target.

Overall, in case of a successful close above the 50.0% Fibonacci and a penetration of the 61.8% Fibo, the risk in the long-term picture would turn to the upside.