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

Like Wells Fargo (WFC - Get 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 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.

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Trading Goldman Sachs Stock

Daily chart of 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.