Short-Term Buy Signal for Goldman Sachs (GS)

Shares of Goldman Sachs GS are higher on the session by 3.46%, currently trading $144.79. The stock has been quite volatile as of late, with both bulls and bears coming to play in the name recently. Taking a look the technicals, the stock is exhibiting a short term-buy signal. Take a look at the included chart; as you can see the $144 level is a very important level with the stock testing that level four times. GS is trading above that level now and looks like it is holding. You will also notice the “U” shaped basing out that the stock has experienced this week. Technical theory suggests that the stock is in a bull trend now. If the stock opens higher than $144 tomorrow, getting long with a stop at $143.50 would be a smart play. The upside target would be the 50-day moving average, which is currently trading around $154.00. I wouldn’t be greedy and would have a limit order to sell out at $150. Risk = $1.29 or 0.89% Reward = $5.21+ or 3.60% Giddee-Up.