Market Overview

2 Charts That Show Why Goldman Sachs Will Be Strong This Week

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The following stock has been highlighted by VantagePoint Software, an artificial intelligence platform that provides market forecasts 1-3 days in advance.

2018 has not been kind to Goldman Sachs Group (NYSE: GS). Wall Street's second-largest investment brokerage is down 9 percent year-to-date as the financials have struggled to sustain momentum. 

But in the wake of the company's Q2 earnings beat last week, where the company exceeded expectations on both EPS and revenue, shares of GS seem to be turning around. In the wake of the report, during which the company also confirmed that President David Solomon would succeed Lloyd Blankfein as CEO on Oct. 1, the stock has reversed into an uptrend, according to VantagePoint Software. 

The following chart shows this reversal in action. The blue line represents a predicted 6-day moving average 1-3 days in advance, and the black line shows the simple 10-day moving average. A crossover of those two lines indicates a change in trend. 

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In this case, the blue line is predicting GS's six-day moving average 72 hours in advance. The software indicates that GS actually had a crossover to the upside on July 9, a week before the strong earnings report. 

The red-blue bar at the bottom of the chart is a Neural Index. The recent shift to mostly green—which indicates positive sentiment in the near-term—confirms this trend. 

This next chart shows mostly the same thing, but with a predicted moving average 48 hours in advance. 

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The fact that the two lines aren't as far apart as in the first image tells us that the stock is more likely to reverse over a 48-hour span than a 72-hour span. But because both are showing clear uptrends, we can expect positive price action for at least the next three trading days. 

Shares of Goldman Sachs closed up $2 to $233.76 in Monday's session. 

VantagePoint Software is a content partner of Benzinga. For a free demo click here

Posted-In: vantagepointLong Ideas Trading Ideas General

 

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