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Broker/dealer Goldman Sachs Group (GS – 115-1/2) reported this morning that its third-quarter earnings came in at $1.62 per share, surpassing Street projections by 11 cents per share. In response to this positive earnings surprise, the equity rose as high as 121-1/4 before scaling back and is now down over three points in late-morning action.
With this decline, the shares have breached their ascending 10-week moving average, a trendline that has offered perfect support on a weekly closing basis since early June. GS remains beneath both its 10-day and 20-day moving averages, which appear on the verge of a bearish crossover. Such a technical development could have bearish implications for the security's near-term prospects.
In GS's options pit this morning, 1,000 contracts have crossed the tape on the out-of-the-money October 100 put.