Blue Chip’s Pullback is Too Good to Pass Up

GS appears to have bottomed just above its intermediate trendline

   
Blue Chip’s Pullback is Too Good to Pass Up

Goldman Sachs (GS) — This Dow 30 component is one of the world’s leading investment banking and securities firms. It earned $15.46 per share in 2013, and the consensus estimate is $15.75 in 2014 and $17.03 in 2015. S&P’s 12-month price target is $195 and is based on a multiple of 12.5X their 2014 EPS estimate of $15.65.

I last recommended GS on Dec. 3, at about $169, noting that it broke to new highs on a day when most stocks took a breather. I set a trading target of $180. 

Not only did GS break out, but on Jan. 6, it exceeded my trading target, topping out above $181. Profit-taking and the January sell-off drove the stock to just under its 200-day moving average. 

Now at about $164, GS appears to have bottomed just above its intermediate trendline, and in the last two days, it closed above its 200-day moving average. Its MACD indicator is close to issuing a buy signal. 

Buy GS at the market with a trading target of $175. Investors should consider this premier blue chip as a long-term purchase.

02 13 14 gs 300x191 Blue Chips Pullback is Too Good to Pass Up
Click to Enlarge

chart key 300x84 Blue Chips Pullback is Too Good to Pass Up


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/trade-day-goldman-sachs-gs-2/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.