Bull & Bear: Goldman Sachs (GS)

Shares of The Goldman Sachs Group, Inc. GS are trading lower on the session by 0.40%, at $150.91. With shares bouncing off of the $150.00 level this morning, you have to wonder where shares are heading next… Bulls: Bulls will note that the $150.00-152.00 level has been a major support/resistance level over the past year. If shares were to base around these levels, bulls could easily swoop in and push Goldman Sachs higher. Bulls will also note that the stock is nearing oversold territory, which could provide some mechanical support to shares. A bullish trader could buy the June $155/145 risk reversal for a net debit of $0.25. This would be a cheap way to bet on higher prices over the next few weeks. Bears: Bears will note that the 20-day, 50-day, and 200-day moving averages are all downward-trending; this indicates that traders are will to sell the name on any rally. Goldman Sachs would have to test and break out repeatedly to get even one of these moving averages to halt their decline. Bears will also note that, should shares break the $150.00 level, Goldman Sachs could easily careen toward the $144-145 level without much of a push. A bearish trader could buy the June $145 put for a net debit of $2.30 and sell the June $160/140 strangle for a net credit of $2.43. The net credit of $0.13 would be a cheap way to voice the bear position outlined above. The Goldman Sachs Group, Inc. is a bank holding and a financial holding company. Goldman Sachs is a global investment banking, securities and investment management company providing a range of financial services to a client base that includes corporations, financial institutions, governments and high-net-worth individuals. Its United States depository institution subsidiary, Goldman Sachs Bank USA, is a New York State-chartered bank. Goldman Sachs operates in three segments: Investment Banking, Institutional Client Services, Investing & Lending and Investment Management.