Monday, April 26, 2010

Goldman Sachs and a Confluence of Cycles.

The chart below shows Goldman Sachs (2007-2010)
Three cycles are isolated:
Decline Cycle: Oct. 2007-Nov 2008
Initial Bull Cycle: Nov. 2008- June. 2009
2nd Bull Thrust: July 2009-Oct. 2009
Goldman commenced a rally in February of 2010, rallying from 147.40 until it met resistance in the 180-190 area. As can be seen in the chart all three cycles come into play in this time frame and price level. GS peaked at 186.41 and has since tumbled to 155 as a consequence of the civil charges being laid against the once venerable titan of finance.

It will be interesting to see what price GS will be trading at when the 'Decline Cycle' terminates in the first two weeks of July 2010.

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