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Shares of Goldman Sachs (GS) - Get Free Report are rallying on Tuesday, albeit barely, up 0.15% to $206.17 after the company reported earnings.

Like Wells Fargo (WFC) - Get Free Report , Goldman shares started off lower on the day. However, the rebound comes despite the bank missing on both earnings and revenue estimates.

A troubled stock rallying on less-than-ideal news? There are worse reactions investors could have seen on Tuesday. However, the chart is still pretty sloppy in the case of Goldman Sachs, although a setup is emerging for investors.

It would have been easier to turn more bullish on Goldman Sachs had it reported a beat-and-raise quarter like we saw from Johnson & Johnson (JNJ) - Get Free Report .

Instead, earnings of $4.79 per share missed analysts' expectations by 9 cents, while revenue of $8.32 billion fell 5.7% year-over-year and barely missed expectations by $10 million.

Let's look at the action on the chart.

Goldman Sachs and Johnson & Johnson are holdings in Jim Cramer's Action Alerts PLUS member club, and he's taking action Tuesday. Want to know if Jim Cramer is buying or selling GS? Learn more now.

Trading Goldman Sachs Stock

Daily chart of Goldman Sachs stock.

With Goldman Sachs' early Tuesday decline, shares slipped down to the 200-day moving average, where they promptly bounced higher. Now, shares are reclaiming both the 20-day and 50-day moving averages. That's hardly bearish action, although it's not exactly price action that screams bullish either.

So what now? The $207 mark has kept a lid on Goldman Sachs stock the past few days and has played a role as both support and resistance since July.

If Goldman Sachs stock can reclaim the $207 mark, it opens the door for a run to the 23.6% retracement at $214.62. Above that and double-top resistance near $220 is on the table.

On the downside, let's first see if GS stock can maintain above its 20-day and 50-day moving averages. Below opens the door to more downside, most notably with the 200-day moving average currently at $198.36.

This level was support on Tuesday, as was uptrend support that's been in play all year (blue line). Below this area and the $195 mark could be tested. Should the charts completely fall about for Goldman Sachs stock, range support comes into play at $185.

Keep it simple with GS stock: Over $207 and higher prices could be in store, while the 200-day should act as support on the downside.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.