This morning, leading financial stock, Goldman Sachs Group Inc (NYSE:GS), is trading higher after reporting earnings. At this time, the financial giant is trading higher by $2.77 to $214.35 a share, as investors celebrate the company’s results.
To buy or not to buy, that is the question!
Let’s take a look at how you should play the stock for profit now. After this move happening right now, many traders and investors are now wondering how high could GS stock go before it stalls out. Also, is it worth buying right now for further upside potential.
Lets go to the $GS chart for the answer! When considering the stock, it is important to note that the stock has been rising since June 3rd, when it traded as low as $180.73 a share. As revealed in the stock chart, traders and investors can easily see that the stock will face major resistance around the $220.00 area. This price area is a key resistance level where the stock broke down on volume back in early November 2018. Often, when a stock retraces back up to its former break down level, it will be met with major selling pressure. Remember, there are traders and investors who have been holding the equity from that time and will look to get out of the stock when given the chance to get back to break-even.
Therefore, based upon analyzing the stock chart of $GS, it is easy to come to a conclusion. While there could be a bit more upside potential in the stock price, the headwind it is about to face does not make buying it now worth it. As you can see from the chart below, the $220 price point represents a level where the stock should change its course and move lower. At that point, traders can look to short the stock, and profit from the decrease in share price. Always read the charts, the are the true tell of what is to come in the future. Fear and greed are what drives the markets, and the charts reveal that to us.