Goldman Sachs: Since early May GS has stayed within a tight range from about 98.58 to 90.96. Last week GS bounced off the bottom of this range and has headed higher the last 4 days nearing the top of its range at 98.58. This would the third time it hit this level, meaning the resistance is weaker this time than the last two. GS briefly got broke out of its range on July 17th hitting a high of 100.49 but the resistance was too much and it closed back into its range. The recent price movement leaves GS with two options, breakout or breakdown and there is little room to chop- which makes a good trading set up.
Long Trade: If GS breaks above 98.58, Long with a stop below 98.58. The first price target is close at 100.49 this doesn’t even have to be target but if GS fails here it could just be creating a new range. Price Target numerou two is 103.80 which is the bottom of the gap above and Price Target three is the top of the gap at 106.14.
Short-Trade: GS fails to break above 98.58, which means the range holds. GS is then a short and the play is to let it fall back to the range support levels, the stop is above 98.58. The first price target is at 93.91, if we look at the other times GS failed to get out of its range this was the first stopping point. The second price target is 90.96 the bottom of the range which has stopped any price decline. If GS does break this the next price target is 87.52.
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