
Why You Should Buy Goldman Sachs Stock Right Now
NEW YORK (TheStreet) -- Goldman Sachs (GS) - Get Report stock should be among the winners in the next few weeks as the oversold stock indices rally into mid- to late-November. From Goldman Sachs' low this week near $168, you should expect a rally into the $190, +/-$5 zone.
The weekly bar chart below shows the crystal-clear impulsive decline from the June high of $218 to this week's low. The pattern of the next few weeks should look like a rise, followed by a decline halfway back to this week's low, then another rise into Nov. 25 +/- 13 days.
Click here to see the following chart in a new window.
On July 16 we warned that shares of Goldman Sachs, then trading around $212, were poised for a precipitous decline. Since then, the price of the stock has fallen in an orthodox, Elliott Wave pattern, and has landed in the support box of $173 +/-$6 that we gave in July. In addition, the stochastics have descended the path from extreme overbought pink box to the currently oversold green box, while the lower two-standard-deviation band has been tested twice and is holding as support.
The answer to the decision support engine question, "If I had no money in Goldman Sachs, would buying or selling actions be indicated now?", is buying actions only! So if you're short, use buy stops to protect profits at $176, while trying to buy to cover your position on any test of $169 +/$2. If you're flat, start setting up a long position on further weakness toward $169 +/-$2, or upon a break above $176. If you're long, hold on here, and use the preceding parameters to maintain your exposure and add more if tolerable. Then, hold on for a quick up-down-up journey toward the pink box that now surrounds $195 +/-$5. When the stock gets into that zone, you should exit all long exposure, because the stock likely will plunge toward $145 +/-$8 in the first half of 2016.
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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.









