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
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