Goldman Sachs Group, Inc. (GS) Technical Analysis

Examining the weekly charts of Goldman Sachs Group (GS), reveals interesting facts,
there is a resistance line (yellow - resist1) that was first touched Nov 2002,
this resistance line holded its form through out the years and lately resisted at 219 and 230.

on the other hand, we clearly see a supporting line from Mar 2003, last supporting the stock at JUn 2005( support1 red).

furthermore, we can clearly see a resisting line that transformed into a support line in Jul 2006 (Support 2)
the current level of the stock is residing on top of the support 2 level, a critical point for GS.
we can also see a double top pattern that formed on 230$ value.





Examining Fibonacci retracements on the bullish rally from Jun 2005, sets 187.37$ as a first retracement for an acceptable technical fix, and 169.5$ as a second target for the bearish double top form we already noticed.

the stock is clearly trading in a limited price range since October 2007, and is very close to the lower band of the trading range at 183$.

However, ADX is forming an uprising trend, forming a strong bearish trend , pointing a potential of the break out of the limited trading range.
the target of the break out is 162.5$.


to conclude we see many bearish signs in long term and short term, double tops and channel breakout with uprising momentum, the first target is 170$, breaking it would lead to the second target of 162.5$, and 152$.

Boeing Stock (BA) Technical Analysis

Today we are going to analyze the Boeing Stock (BA) Boeing is currently trading at 82.87$,
analyzing the weekly charts uncovers two lines that were affecting the stock since mid Jul 97 and Mar 2003
(noted as support 1 and resist 1 in the attached image),
the support line worked perfectly until it was broken in mid 2007, and the bearish sentiment on the stock took over.

the bearish target for the last bullish rally starting starting from 2003 is initially set at 74.4$.
this will be a critical point for the stock and if it will broken the new target will be 64.62$.




examining a shorter term data (daily chart) for the stock,
dont give any brighter future to the stock
the stock broke the price envelope it was trading in, and broke the fibonacci retracement of 61.8% at 84.44$, the next support level is at 50% retracement at 71.32$.

to conclude no bullish signs on the boeing stock, would suggest to stay aside or enter short.

Technical Analysis on Intel Corp (INTC) Weekly Chart

In the last couple of days intel (INTC) crashed around 16% of its value, and its currently trading at 22.67$.
usually when seeing such a crash, an investor would start to smell the upward fix,
as its obvious that nothing with the earnings nor the sellings changed in these 3 days for such a large company trading in normal multipliers for the sector.

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i would usually analyse the daily behaviour of a stock, however, to reduce the amount of noise caused by the recent crash, i moved to a weekly chart, trying to get a clue on the direction of this stock.

i will start my analysis by an observation, checking the weekly bars from 1994-2007 we see a clear traingle (red) formed in Dec 95 and May 2000, broken at Apr 2007 in the price of 20.2 - 20.3$, forming a strong bullish sign with a target of 30$ rise, this took the stock up to recent value of 27.73$. a failure to break this resistance level with a lousy new year beginning shaded the bullish trend on the stock.



Examining the last couple of months Jul-Dec 2007

shows that Intel was trading in an envelope (Pink) all this period, and that the last crash (16%) took it to the edge of the envelope.
Assuming the envelope will support we will see a fix toward the middle of the envelope (26$), otherwise a major trend flip will happen. the stock value is at a critical point.

Another important technical indicator that should be considered is the fibonacci retracement of the last bullish trend since july, its surprising that the 50% fibonacci retracement level is at 22.16, which is very close to the envelope edge, breaking this level would take us to the 61.8% fibonacci support level on 20.86 . and again we have the stock value at an important point.

combining these two strong technical indicators together, on the weekly charts, leads us to the conclusion that its gonna be a volatile year for intel, down target of 20.8$ and up target of 26$ according to the breakout scenarios meantioned above.

looking furthermore for more information from technical indicators
RSI - neutral, getting close to buy area
OBV - shows that still not a lot of money is flowing out of the stock.
ADX - Shows weakining trend
MACD - SHowing bearish divergence
CCI - shows deeply oversold signal
Stochastics - weak Sell signal

I recommend, buying symmetrical options startegies (straddles, strangles) on the stock, to benefit both direction, or wait to confirmation of one direction to enter bullish/bearish on the stock.

for a bullish low risk strategy suggestion please click here .