Goldman Sachs Shares May Be ‘Exhausted’: Technical Analysis
Investors should consider selling Goldman Sachs Group Inc. shares even after the bank posted record earnings, according to Bollinger Bands analysis.
Analysts who look at charts to predict moves say the shares may be poised to drop after breaking the higher of two so-called Bollinger Bands, lines plotted two standard deviations above and below the 20-day moving average.
Goldman Sachs climbed as much as 1.1 percent to $151.15 in New York trading after reporting earnings that beat analysts’ estimates as revenue from trading and stock underwriting reached all-time highs, breaching the upper Bollinger Band at $151.07. The New York-based bank last closed above the upper band on June 4, a move that preceded two straight weeks of losses. The stock is up 78 percent this year.
“This stock’s move up is exhausted,” said Luis Benguerel, a trader at Interbrokers Espanola in Barcelona who looks at technical indicators such as Bollinger Bands. “Not even today’s earnings may keep the shares at these technically high levels.”
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