It’s been a busy week of earnings, with the major banks reporting over the last few days.
That led to the blowout results by Goldman Sachs.
The bank reported earnings of $14.93 a share, up 55% year over year and ahead of estimates calling for earnings of $10.11 a share. Revenue of $13.61 billion beat expectations of $11.67 billion.
The strong results should give bulls confidence early in the fourth quarter, as the stock turns higher and looks to make a strong push into year-end.
Can Goldman Sachs hit all-time highs after the report?
Trading Goldman Sachs Stock
First, I love trading stocks from the long side that are doing well on the fundamental front. With a report like its current one, Goldman Sachs is clearly operating at a high level.
Next and more important, I love stocks that are trading well and above key levels.
For Goldman Sachs stock, it reclaimed the 10-day and 21-day moving averages on Thursday following the solid results from its peers.
But it remained below the 50-day moving average and downtrend resistance (blue line).
The stock then reclaimed those two levels on Friday after its own earnings report, along with giving bulls a weekly-up rotation.
From here, I want to see Goldman Sachs stay above the 50-day moving average and Friday’s low. Below Friday's low and we could see a gap-fill down to $393.66 and/or a test of the 10-day moving average.
On the upside, let’s see if the shares can clear the October high, currently at $404.21. Above that opens the door to the $417 resistance mark and the all-time high up at $420.76.
Should shares clear the all-time high and start making new highs, keep an eye on the 261.8% extension, up near $444.
That could be a possible upside target should Goldman Sachs gain momentum through the quarter.