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Is The Selloff In Goldman Sachs A Buying Opportunity?

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Is The Selloff In Goldman Sachs A Buying Opportunity?

Goldman Sachs Group Inc (NYSE: GS) shares are up 5.2 percent in the past five trading sessions after the company released disappointing first-quarter earnings numbers. The market initially punished Goldman for the miss, the worst among its peer group, but investors have since swooped in to buy Goldman shares on the dip.

Differing Opinions

Sell-side analysts may or may not have helped that rebound. While Dick Bove downgraded the name, two other firms upgraded the stock.

Bove downgraded Goldman from Buy to Hold, but Atlantic Equities and Citigroup upgraded the stock and urged investors to buy the post-earnings move.

The earnings report and subsequent analyst action have put some notable technical levels for Goldman in play. After peaking at an all-time high of $255.15 at the end of February, Goldman shares dropped as low as $213.18 following its earnings report. The $213 level is an important level technical level from a historical standpoint, as it represents major potential support. The $213 level represents Goldman’s previous all-time high from summer 2015 prior to the stock’s major post-election breakout. Goldman bulls are now hoping $213 support holds and puts Goldman back on a bullish track.

In the near term, Goldman traders will be watching to see if the $213 support level holds. At the same time, a move above $230 could indicate a breakout from the stock’s short-term downtrend that began on March 1.

Since Election Day, Goldman shares have more than doubled the return of the S&P 500, rising 24.6 percent.

Joel Elconin contributed to this story.

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Image Credit: By Youngking11 - Own work, CC BY-SA 4.0, via Wikimedia Commons

Latest Ratings for GS

DateFirmActionFromTo
Jul 2019UpgradesMarket PerformOutperform
Apr 2019UpgradesSellHold
Apr 2019MaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for GS
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings Long Ideas News Upgrades Downgrades Technicals Analyst Ratings Best of Benzinga

 

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