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Fan Yang

Goldman Sachs (GS) Closing in Our Bearish Target/Support

Last week, I noted that Goldman Sachs $GS was breaking below $200, and opening up the bearish correction towards $170, which would also likely provide some support.

GS Daily Chart

(click to enlarge)

Bearish Continuation:
- Looking at the daily chart, we can see that the market is really accelerating the downturn.
- It looks like a run away bear train. 
- The fact that price rebounded from $190 but then found resistance around $199 suggested that bears were firmly in control.
- GS is now testing $180, and I think price it will fall further towards $170.
Support:

GS Weekly Chart

(click to enlarge)

Channel Support:
- We can see on the weekly chart, GS is coming off a price top, but heading to a channel support around $170, 
- If price continues to fall at the same pace it has been during the last couple of weeks, we might see price hit $165 before challenging the rising channel support. 
- I think at this point, we can only say that the $160-$170 area appears to be a key support area, especially when the weekly RSI dips below 30.