Goldman Sachs Group Inc (NYSE:GS) stock is inching higher today, up 0.3% to trade at $472.51 at last glance and extending last session’s bounce after the sector was hit hard on Tuesday. GS could extend its rebound, too, as it is now flashing a historically bull signal on the charts.
The bank giant pulled back to its 100-day moving average during this week’s negative price action, and per Schaeffer’s Senior Quantitative Analyst Rocky White, it’s run into this trendline five times in the last three years. For the purpose of this study, White defines that as the equity trading above the moving average 80% of the time over the past two months and closing north of the trendline in eight of the last 10 sessions before coming within striking distance of it.
GS finished higher one month later after 80% these signals, averaging a gain of 4.87%. From its current perch, a similar move would put Goldman Sachs stock back above $495.
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