Goldman Sachs (NYSE 🙂 is scheduled until today for the market to open. The lender is expected to report earnings per share of $ 4.86 with revenue of $ 8.34 billion, dramatically lower than earnings per share of $ 6.28 and $ 8.65 billion last year in the corresponding quarter.
The reversed outlook for – bread and butter from a bank – since last year explains why analysts have lowered expectations. In addition, the lender is likely to be hit by disappointing IPOs such as WeWork and a general slowdown in mergers and acquisitions.
Still, regardless of Goldman's earnings results, technicians point out that investors don't seem to have written off the shares. Instead, they are waiting for the fence at a crucial price level that could determine whether the medium-term trend will resume or whether the short-term downward trend will extend to the medium-term.
The price has fallen below its upward line since the bottom of December on October 1 and closed for the first time on Monday. This marks the first point of defense for the upward line. The second is the low of 15 August, which was respected by the low of 3 October that immediately bounced on it at an intraday level. That $ 193 level is crucial, especially after the September 13 high has not risen above the July highs, $ 222 highs.
Back to the upward line since the December sale – the fact that prices recovered from October 3 to close low is an obvious representation of the status & # 39; line in the sand & # 39; , while traders wait for profit results.
The weight of the evidence does not, however, provide a clear signal.
On the one hand there was Friday's extremely bearish falling star – whose intrinsic pessimism is increasing with the confirmation of resistance under the broken medium-term trend line. Also note that Monday's decreased volume increases Friday's volatility while traders fear.
On the other hand, several price, momentum or volume-based indicators such as MACD, RSI, ROC and OBV show a rebound, suggesting a continuing rally.
Ultimately, we have to see if the high star of the shooting star has broken out or if the lows of August-October have been broken. And traders now seem to be waiting for income to give directions.
Trading Strategies
Conservative traders would wait for a new high to extend the medium-term upward trend beyond the July peak to go long or for two independently (the July medium-term upward line peak not included) descending peaks and troughs too short.
Moderate traders can go long with a close-up above the shooting star or enter a short with a new low below $ 193.
Aggressive traders can trade between the highs of Friday and the lows of October, before or after the profit is reported, depending on the risk aversion.
Trade sample – arrangement of short positions
Input: $ 206 Stop-loss: $ 208 Risk: $ 2 Target: $ 200 Reward: $ 6 Risk: Reward ratio: 1: 3
