Wednesday, July 15, 2009

GS Goldman Sachs Group, Inc. (Public, NYSE:GS) Stages Technical Breakout

GS staged a technical breakout on good volume as we can see on the daily timeframe above.

GS opened with a gap, formed a bullish flag, so we look for a measured move of 100% of the pattern. I placed my fibs from the late day low to the ORH. I entered long as the flag broke and price moved quickly upwards. Midway to the target, it started to slow down. As soon as price and the rising 5 EMA came back together, price accelerated towards the target.

The SPY gapped up and broke quickly, but I waited for the 5 ema to catch up to price before jumping in. Price extended 50% from PDL to ORH.

Yesterday we said that POT had to break above the capitulation base (blue line) before we would contemplate a long entry. Today it gapped into the base and the initial candlestick action was very similar to yesterday, but eventually, it carved out a mini C&H pattern. Here again, we are looking for a measured pattern move of 100%, so place fibs from low to high of C&H pattern and exit at target unless it forms a bearish reversal pattern along the way.


Day Tradr said...

Beautiful trades Jamie.

Anonymous said...

Hey Jamie,

Very nice action today. I was not expecting it the Wed before OPEX in the middle of July.

Jamie said...

Thanks Day Trader.


Yeah, futures gapped on INTC earnings and held in the upper range of the gap overnight.

Feeling quite toppy now and ES has retraced 50% of the day's gains. Could be choppy tomorrow as OPEX kicks in.