Leading financial stock Goldman Sachs Group (NYSE:GS) traded sharply lower Tuesday after reporting earnings. The financial giant is part of the thirty stocks in the Dow Jones Industrial Average. It should be noted that the Dow is a price-cap weighted index, giving Goldman Sachs a very high weighting. A fair case can be made that Tuesday's decline in Goldman Sachs' stock price was the sole cause for a 50 to 60 point decline in the Dow.
Short-term day traders should watch for important chart support on GS around the $210.47 level. Swing traders should watch for major chart support around the $196.67 level. This trade level matches up with the 50-week moving average, which is used by many institutional investors and traders.
Add a Comment