Happy Holidays!
On Dec 8, 2012, I posted a video on the financial sector pointing out the possible upward price movements from some of the financial stocks. I have place the video below for those that wish to watch it again or for those that have not seen it. (The ETF is XLF not XLE as mentioned in the video. Click here if there is no video player on your screen.)
Recently, the financial sector has been one of the strength in the market and the sector leader GS appears to be setting up to lead this sector higher. GS daily price chart (see below) shows how it moved rapidly to the price target of 128/129 projected by the multi-bottom pattern made between Nov-Dec after it has broke above the 121 level.
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| (Click on the chart to enlarge.) |
Now it is at an inflection point near the 129/130 level where there is confluence from the multi-year declining trend line and the support/resistance trend line (see weekly chart below). This confluence could pose a minor pullback/consolidation before it resumes its upward move. After GS breaks above the 130 level, it could continue to move toward the 174/175 price target with the possibility of encountering resistance near the 156/157 level.
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| (Click on the chart to enlarge.) |
