China Mobile's setup is also important because it tips off traders to a similar setup in Goldman Sachs (GS). Goldman hasn't exactly been a stellar performer in the last year -- shares of the investment bank have fallen more than 30% in the last 12 months, dragged lower as the whole financial sector took its knocks in 2011. But a double-bottom in GS could spell significant upside in this fallen financial.
Goldman formed its double-bottom at the start of the new year, when shares found support a second time at $90. The second bottom is actually a shorter-term double bottom itself, with a breakout level at B2. Because the intermediate peak at B2 failed to reach the firm's current breakout level, it's not a triple-bottom; either way, though, the trading implications are exactly the same. The buy signal comes on a push above resistance at that $118 price level.
When that happens, I'd recommend putting a protective stop at the 200-day moving average.Goldman shows up on recent lists of 10 Top Value Stocks With Big Gains in 2012 and 5 Stocks to Buy on a Pullback, and it was highlighted earlier this week in "5 Stocks Poised for Breakouts." Follow @stockpickr
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV