Goldman Sachs: QuestionableThe current consolidation occurs with in the primary uptrend. Normally we would be quite bullish on such a stock, but the current flat correction is taking too long for comfort. Earlier attempts to make a push higher have not succeeded and the lack of demand while the broader market is flirting with new highs does not match the trend phase.
With considerable scepticism and caution we look to the upside as long as 210 holds as critical support. Buying is only justifiable when the trigger at 230.90 is taken out. Target then comes in at 264.50 with 250 being intermediate resistance.
GOS trade ideas
Goldman Sachs - Not looking good...If you are looking for a large cap stock to short, Goldman Sachs might just be a good one to look at.
Fundamental
The fundamentals for Goldman is showing signs of concern -
1) Revenue has been falling for the past 3 years;
2) Net income has been hovering without growth for the past 5 years;
3) Operating and free cash flow has been falling for the past 2 years;
4) ROA is hovering below 1.00 (industry average is currently 2.85%); and
5) ROE is hovering below 10.
Technical
Price has completed a 5-wave structure since June 2016, and we are currently seeing a potential development of an ABC structure towards 185.1 - 182.8 region.
Combining the fundamental and technical development, I will have my bias on shorting GS in the short term.