Goldman Sachs-GS: Earnings Release Technical Preview BULLISH CASE: On better than expected news/outlook the stock could trade to the upper limit of the very short-term bullish price channel at $149.32.
On a bullish breakout above the price channel the following resistance levels would become upside objectives: $153.73, $156.08, $164.05, $166.55, $169.31, $174.05, $178.85, $182.41 (50-day moving average, primary downtrend resistance line proxy).
BEARISH CASE: On worse than expected news/outlook the stock could trade to the lower limit of the price channel at $140.08. On a bearish breakdown below the price channel the following support levels would become downside objectives: $139.18, $136.79, $134.16, $131.69, $128.00, $124.34, $122.36, $120.40, $117.25, $114.95, $113.17, $110.88.
NOTE: The shares have experienced much higher than normal volatility into earnings. It is likely target values noted (either direction) would be exceeded on a surprise. Very small short-base in terms of days to cover, 0.81, with 2.72% of the float short. Given negative sentiment and recent volatility the gap risk is very high. Reactions on a surprise have a very high probability of being extreme in duration and price.
Translation? If Goldman beats expectations, which IT WILL (I guarantee it), "reactions on a suprise" will be "EXTREME" to the upside!
Hardly anyone is short Goldman...only 2.7% of the float. So it won't be short covering that will propel this higher, it will be tremendous buying pressure.