GS Update (by Leaf_West)

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I'm going to repeat the blog post I made back on April 20th called "Goldman … Moving Averages".

"As the readers of this blog know, I often look at charts by stripping out the price candles and only looking at the moving averages.  I find that this type of analysis helps you focus on the dominate trend.  By knowing which way a stock is trending, you can increase your edge in trading by picking trades in the direction of the trend.

GS is clearly in a daily down trend and that suggests to me that if the market is going to fail at the 1340 S&P level, GS should be at the top of your short list.

GS_April20, 2011_Daily

 

 

Let's look at the updated GS chart including the price candles …

Goldman Sachs (Daily):

GS_May 20, 2011_Daily

What a piece of doggy poop … some institution(s) are pounding this thing and want out.  Value buyers are showing no sign of being able to swing the balance of power back yet.  That will happen but it is best to not try and guess but to wait for the market to tell you it has happened or ideally is in the process of happening.

Cheers … Leaf_West