Goldman Sachs (NYSE:GS), the investment-banking powerhouse, has gone through many changes over the years. As bonds became more popular, Goldman built its fixed-income business. When deals were leading the street, the banker steered human capital toward M&A. And all along the way, the company has been tops in its field. But now, Goldman Sachs is at another crossroads -- its stock price.
The chart below shows its price action over the last year. From a high of over $218 in June 2015, it fell to a low of $138-and-change this past June. But since that summer low, it has been moving steadily higher. The price is now just a few dollars away from confirming a double bottom and a move over the April high would do just that. The price is at a crossroads.
The falling trend resistance has followed the 200-day SMA very closely in 2016. And on Tuesday, they both intersected the price, which is also back-testing the short-term high from July after a small pullback. A push through all of these intersecting lines will gather a lot of buying interest in the stock. Goldman has strong momentum to move higher. The RSI is in the bullish zone and rising, while the MACD is positive and about to cross higher. The timing may be imminent. The Bollinger Bands® have squeezed in tight -- often a precursor to a move.
It may soon be time to buy Goldman Sachs.