Goldman Sachs Group Inc. (GS) has had a hard time making progress during the market’s latest move higher. The market made new highs and this stock did not, showing relative weakness. We put it on the radar February 22nd when it broke the rising channel to the downside.
Today in the Morning Call I spoke about the head and shoulders pattern with a short below the $160-160.30 area. If you’re in it for cash flow, this is a spot to take some profits around $158.70. If you can hold for a “macro move lower” there is a small spot $155, then the measured move lower is around the $150 area.
The market still has not resolved this macro wedge, and this stock could help give us clues. If stock regains $160-160.50, I would cover as pattern didn’t follow through.
Here is today’s chart.
Here is the chart from February 22nd.
*DISCLOSURE: Short GS
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