Chart of the Day: Goldman Sachs (GS)

Since hitting 52-week lows in March, Goldman Sachs (GS) has been trending higher.  As it does, a trend line and a support level have formed, which can be helpful to investors looking to trade this stock…

A trend line is a straight line connecting at least two price points and then extends into the future to act as a line of support or resistance.  It’s my opinion that any 2 points can start a trend line but when the stock tests the trend line 3 times or more, it becomes more relevant.

In this case, GS has tested it’s trend line (blue) 5 times in the past 3.5 months.

Also in the chart below, you’ll see that I have identified a support level (green) at $195.

Notice that right now the trend line and the support level are intersecting at $195.

Take a look at the 1-year chart of GS below with added notations…

See chart and continue reading at STOCKNEWS.com