In our analysis yesterday on the stock price of Goldman Sachs we noted that at current levels we prefer to be neutral if not slightly bearish. The chances of a major reversal are high and I expect to see more downside.
Red lines - channel
Blue line- bearish divergence
Goldman Sachs stock price continues to respect the red channel. Price is now challenging the lower channel boundary just above $380. As we noted in our previous posts, the bearish RSI divergence was a key characteristic that made us expect a reversal lower. Breaking below $380 will increase chances of price moving towards our target area of $320-$300.