Negative Publicity Isn't Hurting Goldman Sachs
By Cory Mitchell | March 27, 2012 AAA |
Articles continue to pop up addressing the public anger over the business practices of Goldman Sachs (NYSE:GS). Greg Smith, former employee, wrote a scathing opinion piece in the New York Times (NYSE:NYT) last week and is looking to write a book on his experience at the firm ... which, to say the least, will not paint Goldman in good light. The negative publicity has not affected the share performance of Goldman Sachs stock, though, which is having a fantastic rise so far this year. In fact, many big name financial stocks that no one could say anything good about a few months back are all rallying aggressively. Four of the biggest names in banking are currently top performers in the financial sector, despite the negative publicity. The question now is, can Goldman Sachs, Citigroup (NYSE:C), J.P. Morgan Chase (NYSE:JPM) and Bank of America (NYSE:BAC) keep it up?

Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.

Goldman Sachs has been flying higher this year, and so far very little has been able to slow it down. Recently putting a new intraday high for 2012 at $128.72, the stock is up roughly 39% YTD. The short-term trend is higher, with the trendline that began in December intersecting just below $123. A move below that, or the 50-day moving average slightly lower at $116.49, indicates a larger decline. Significant support is from $117.8 to $111.40, which should hold up deeper pullbacks (if not, that is very bearish) and provide a buying opportunity if it does. There is resistance overhead from $130 to $140, which was a choppy trading range during summer last year. Ability to move into this area is a positive signal for the longer-term, while inability to make further progress at these levels means profit taking is likely in order. There is a negative divergence on the MACD currently. Divergence is a poor timing indicator, so it is not a 'sell' signal, but many traders do use it as a sign of caution.