Goldman Sachs (NYSE: GS) Nearing Test of Resistance, by Market Timer Frank Kollar

January 31, 2013 (by Frank Kollar)

Shares of Goldman Sachs (NYSE: GS) continue to rally with new highs being reached almost daily since early December 2012.

At the time this analysis was written, just before the close, GS was trading at $147.17 a share.

The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as a range of financial services to corporations, financial institutions, governments and high-net-worth individuals worldwide.

GS is approaching both a short term resistance level as well as a long term resistance level.

Short term resistance is at $152.30 and long term (based on 13 months) is at $151.83. The closeness of these two levels adds to the odds that there will be at minimum short-term profit taking or the potential of a correction beginning near these levels.

Chart Courtesy of StockCharts.com

We would tighten stops as GS closes in on the $152 range. Of course a decisive close above $152 could be signaling a continued run to the $170 level, the January 2011 highs. So do not exit this stock unless a correction is signaled.

The Fibtimer.com (http://www.fibtimer.com) Stock Timing Strategy does have a position in Goldman Sachs.

Frank Kollar has been timing the financial markets since 1982, with online service since 1996. He is a dedicated trend timer and his strategies exited the markets before the crash in 1987 as well as the bear market in 2000 through 2002. During the 2000-2002 bear market and the 2008-2009 bear market his bearish positions resulted in substantial gains, all achieved by trading trends.

Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.

Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.

Disclaimer: The financial markets are risky. Investing is risky. Past performance does not guarantee future performance. The foregoing has been prepared solely for informational purposes and is not a solicitation, or an offer to buy or sell any security. Opinions are based on historical research and data believed reliable, but there is no guarantee that future results will be profitable.

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