I have no idea what Goldman Sachs GS will do from here. The only thing that we can be sure of is that the gangster after seemingly breaking support at the $130 level has now bounced all the way back above it's 50 dma and closed the week at $135.49. I was tempted to add to our position on Friday, but it may be already overbought on a short term basis. You can see in the daily chart above the last week of trading when the selling volume maxed out and was replaced with buying. But now the buying volume is drying out. That is what happens just before a pullback or a turnaround. On the other hand you can see the stochastic rising and separating a bullish signal.
I think the next move is to add another 1/4 to our position above the 50 dma and put the stop just under the 50 day moving average or just under $135. We will have to wait and see.
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