Bank Stock Conquers Long-Term Trendline

GS has been showing signs of life recently

Nov 2, 2022 at 11:27 AM
facebook X logo linkedin


Goldman Sachs Group Inc (NYSE:GS) stock is showing signs of life. Since June, the security has staged multiple pullbacks to its ascending 36-month (or three-year) moving average, as well as its 2018 peak. Furthermore, the equity just pushed above its 252-day moving average, which acted as resistance in September, just one day after moving above a trendline of potential resistance from its lower highs since August. 

 

 
The equity is also fresh off a positive post-earnings reaction, and last week closed above a trendline connecting lower highs since November 21. Plus, GS is above the $336 level, which is 1.2 times its June closing low, and $339, which is 0.8 times its all-time closing high.
 
Short interest hit its highest level in over two years in mid-August. Now, shorts are in the early stages of covering, with total short interest still about 20% above this year’s low point in May. Anyone that shorted since May is now underwater.

Analysts have been growing increasingly cautious on GS despite its recent rally, which could signal a big shift in trend, with several downgrades since July. Our recommended January 2023 call has a leverage ratio of 4.8 and will double in value on an 11.8% pop in the underlying shares.
 
Subscribers to Schaeffer's Weekend Trader options recommendation service received this GS commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI