New York, August 14th (TradersHuddle.com) - Shares of Goldman Sachs Group, Inc. (NYSE:GS) ended the trading session higher by $0.59 or 0.57% from its previous close. Goldman's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.
The Goldman Sachs Group, Inc. (NYSE:GS), a bank holding company, is a global investment banking and securities firm specializing in investment banking, trading and principal investments, asset management and securities services. The Company provides services to corporations, financial institutions, governments, and high-net worth individuals.
Goldman's recent stock range was formed by a trough where calculated support was defined at $96.72 and by a peak that established the resistance level at $104.38. This range could be used by traders managing their positions.
Traders wanting to establish a position in Goldman Sachs or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.
The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration:
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