6 Trade Ideas For Goldman Sachs This Week

Here is your Bonus Idea with links to the full Top Ten:

Goldman Sachs, Ticker: (GS)



Goldman Sachs (GS) broke the bull flag higher recently and moved up to resistance at 158.50. It has a Relative Strength Index (RSI) that is bullish and rising and a Moving Average Convergence Divergence indicator (MACD) that is also rising in support of further upside price action. There is a Measured Move higher to 177 out of the flag, leaving plenty of room higher and it is still in the bearish Crab pattern with a Potential Reversal Zone (PRZ) next at 169 to 173.33. Support lower is found at 150 and 138.

Trade Idea 1: Buy the stock on a move over 158.50 with a stop at 155.

Trade Idea 2: Buy the May 160 Calls (offered at $1.35 late Friday) and trade them like the stock trade.

Trade Idea 3: Buy the June 160 Calls ($3.20) on the same trigger.

Trade Idea 4: Sell the June 145 Puts ($85 cents) on the same trigger.

Trade Idea 5: Buy the June 160/170 Call Spread ($2.57) on the same trigger.

Trade Idea 6: Buy the May/June 165 Call Calendar (1.21) on the same trigger.

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Saturday which, running into the Memorial Day Weekend sees the equity markets continuing to look strong but with the potential for rotation into the small caps noted last week still.

Look for Gold to continue the trend lower while Crude Oil is biased higher in its neutral channel. The US Dollar Index sins on the verge of a full blown bullish move higher while US Treasuries are biased lower. The Shanghai Composite also looks to be ready to move back higher while Emerging Markets are biased to the downside as they consolidate. Volatility looks to remain a non factor and should be ignored until it breaks above 22 keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ, despite the moves to new highs. Their charts agree although the SPY is showing the most signs of caution as the IWM and QQQ plow forward. Use this information as you prepare for the coming week and trad’em well.

Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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