Goldman Sachs Unable To Recover From Poor Stress-Test Results

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Goldman Sachs GS shares are trading lower by $3.83 at $184.10 in Tuesday's session. The issue has shed nearly $6.00 since its March 4 close ($190.08). Besides a weak broad market, the company was the third-worst performer in the latest stress test results with a tier-one capital ratio (comparison between a banking firm's core equity capital and total risk-weighted assets) of 6.3. After retreating over $3.00 ($190.08 to $186.91) the day following the release, it managed to rebound on Monday to close at $187.93. However , it has erased those gains and them some after sharply lower open (Monday's close of $187.93 vs. Tuesday's open of $185.85), it continued lower until $183.83. It is attempting to find intraday support at that level and stage a rally. The current low coincides with its February 11 low ($183.75). If that level is breached, it may find additional support at its February 10 low ($182.35).