Stock of the day: Goldman Sachs
19 June 2024
Let's focus on Goldman Sachs, which appears to be escaping a correction pattern. Although the market is closed today, we can analyze the recent price action to anticipate tomorrow's movements. The long-term uptrend for Goldman Sachs was interrupted by a flat correction at the end of last year and the beginning of this year, marked by an orange rectangle. This correction ended with a buy signal in March, confirmed in April, leading to a new upswing that began in late May.
Since the end of May, Goldman Sachs entered a correction phase, forming a flag pattern delineated by red lines. Flag patterns typically indicate a continuation of the prevailing trend, and true to form, the price broke out to the upside at the end of yesterday's session. For tomorrow, if the price opens and closes above the red line of the flag, it will reinforce the buy signal. Conversely, if the price falls back into the flag, it would indicate a potential decline.
Traders should closely watch tomorrow's opening and closing prices to confirm the breakout's validity. The current setup suggests bullish momentum, but the confirmation will be crucial to validate this optimistic outlook. Let's see how the market responds when it reopens.