The Bad 2017. for Goldman, it looks worse as the company publishes its report for the last quarter of last year.
Revenue for Q4 in 2017 from fixed income trading fell by 50% and the bank's total revenues dropped to its lowest levels since the 2008 crisis.
The last three months of 2017. led to the first quarterly loss for the company in six years. The main reason for these results is the renewed US tax code.
Lloyd Blankfein, Goldman CEO, said he hoped 2018. to lead to a strong growth in the banking sector due to changes in tax legislation that have a negative impact in the short term, but in the long run are extremely favorable to banks.
Looking away from the earnings from fixed income, the bank posted a rise in all other segments, both for Q4 and for the whole of 2017. The moods and facts alongside Goldman remain very positive, and temporary difficulties give us a perfect opportunity to add to the long positions.
A technical insight into Goldman's shares and where we can best position ourselves.
The price is in a long-term upward trend, and given the negative data we see today, we are seeing a short-term retracement approaching good levels for adding to long positions. Cost adjusted to levels of horizontal, diagonal and dynamic (50SMA) support. 50 and 200SMA are beaten crossed - positive for the price. There is also a Double Top with a subsequent strong downward pulse - an increased probability of correction. Demarker Sequential starts counting down - also negative for the price. Considering the negative formations, we expect the correction to deepen, but in the short run to the zone between $ 240 and $ 245 per share, where we will look for Price Action sign-ins. Input from current levels is risky and is not preferred.
Alternative Scenario: If the price went below the underlying diagonal and remained there, the positive scenario would be spoiled and more likely to see a decrease in the stock price.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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