Eye-Catching Action in Goldman
Goldman Sachs (GS) is now on my radar -- this stock is finally testing one of two key price support decisions on the daily chart above the Sept. 26 low. The first zone comes in between $117.0 and $118.10, which includes the coincidence of two 100% price projections of prior declines, a 0.618 Fibonacci retracement and a 1.272 extension of a prior swing. (I have illustrated the swings I used for this analysis on the daily chart below.)Goldman Sachs (GS) -- Daily Source: Dynamic Trader View Chart » View in New Window »
The second zone comes in at $115.02 to $115.78, which includes a 0.786 retracement, another 100% price projection of a prior decline and a 1.618 extension of a prior swing down. The reason I like this setup is primarily due to the "symmetry," or 100% projections of the prior declines -- mostly corrective declines within the uptrend. I also like it because this chart pattern will remain bullish unless the Sept. 26 swing low is taken out. That's why, at this point, I'm only interested in the zones that stand out above this prior key low....509 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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