Last week we noted that the GS stock price was showing early signs of a trend reversal as price was turning lower from weekly highs and the RSI was showing bearish divergence signals. GS stock price closed at its lowest point of the week and has potential to move even lower. We remain bearish GS stock price.
Blue lines - Fibonacci retracements
GS stock price ended the week at $348 and the RSI closed below the 70 level after providing another bearish divergence. Our first target as we mentioned before is at the $312 level where we find the 38% Fibonacci retracement level. This is the first important Fibonacci support. Breaking below it, will open the way for a deeper decline towards $260. Short-term trend is bearish as price is reversing and started making lower lows and lower highs in lower time frames.
