Trading Idea: - Is Goldman Sachs close to Resistance?

Published on Friday, 25 January 2013 08:08 Written by TradersHuddle Wire

New York, January 25th (TradersHuddle.com) - Shares of Goldman Sachs Group, Inc. (NYSE:GS) are trading very close to calculated resistance at $146.28. The stock ended the trading session at just $144.96, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $113.84 and by the resistance level at $146.28; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Goldman Sachs. However, as the stock pulls back towards $113.84 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $146.28 then traders will get an opportunity to enter the stock as it moves to a higher range.