Goldman Sachs (NYSE:GS) — This is one of the world’s leading investment banking and securities firms. But legal, economic and market conditions have resulted in three years of lower earnings, and recent investigations by the government have led to more declines and heavy insider selling.
The stock’s advance from June’s low at about $90 ran into its 200-day moving average, where yesterday, it reversed triggering a sell signal from our internal indicator, the Collins-Bollinger Reversal (CBR), and its stochastic.
Note the death cross in June, as well as the broadening formation that also began in June. This unusual chart formation is bearish and is always accompanied by declining volume.
Sell GS short with a trading objective of $90. Short-selling is a speculative technique that carries more risk than long investments. A stop-loss order should be used to protect against unlimited risk. Check with your broker for any margin requirements.