Goldman Sachs Jumps 2.93% to $786.78 as Bullish Reversal Pattern Emerges

Candlestick Theory
Goldman Sachs (GS) exhibits a bullish reversal pattern, as evidenced by the most recent session's 2.93% gain to $786.78, forming a strong green candle that nearly engulfs the prior red candle. This follows a rejection at the $790 resistance zone (tested on 2025-10-10 and 2025-10-13). Key support lies at $764 (2025-10-10 low), which aligns with the swing low from mid-September and held firm during last week’s pullback. Resistance is prominent at $790–$795, bolstered by the October 8 high of $795 and October 7 peak of $805.32. A sustained close above $795 could signal renewed upside momentum.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages depict a bullish long-term trend structure. Current price action ($786.78) trades above all three averages, confirming the primary uptrend. The 50-day SMA (approximating $750–$760) recently provided dynamic support during the October dip to $764, while the 100-day and 200-day SMAs near $720 and $680 respectively, exhibit upward slopes. The sequence—shorter averages above longer ones—sustains a "golden cross" configuration, reinforcing bullish bias. Confluence between the 50-day SMA and the $764 support enhances its technical significance.
MACD & KDJ Indicators
The MACD histogram shows a potential bullish crossover emerging, with the signal line flattening after the recent rebound from oversold territory. This aligns with the KDJ indicator, where the %K line (23) crossed above %D (20) from deeply oversold levels (<30) on October 13, suggesting waning downward momentum. Both oscillators imply improving buying pressure. However, MACD remains below its centerline, warranting caution until a confirmed crossover materializes. Divergence is minimal, with both indicators broadly supportive of near-term recovery.
Bollinger Bands
Volatility expanded during the October sell-off, with price testing the lower band near $764 before rebounding sharply. The latest close ($786.78) approaches the upper band (~$790), indicating potential short-term resistance. Bandwidth remains moderately wide, reflecting persistent volatility, but contraction from recent highs suggests consolidation may follow. A decisive break above the upper band would signal strong bullish conviction, while failure here may revert price toward the 20-day midline (~$775).
Volume-Price Relationship
Volume surged to 2.75 million shares on October 13’s 2.93% rally, significantly exceeding the 10-day average and validating the bullish reversal. This volume-backed advance contrasts with the lighter volume seen during the preceding three-day decline, suggesting weak capitulation. Sustained volume above 2.4 million shares would bolster upside credibility. Key inflection: the $764 support held on elevated volume (2.46 million shares on October 10), reinforcing buyer commitment at this level.
Relative Strength Index (RSI)
The 14-day RSI rebounded from near-oversold levels (31 on October 10) to 56, reflecting balanced momentum after the recent recovery. This exit from oversold territory supports bullish near-term potential, though resistance near 60–65 may emerge if the rally extends. RSI divergence is absent, aligning with price action. However, the indicator’s recovery remains nascent; failure to breach 60 could signal underlying fragility despite escaping oversold conditions.
Fibonacci Retracement
Using the swing low of $718.58 (August 22) and high of $805.32 (October 7), key retracement levels frame recent price action. The October 10 dip to $764 respected the 61.8% retracement ($751), with the subsequent bounce exceeding the 38.2% level ($778). The close above $786 now challenges the 23.6% resistance ($789). Confluence exists here, as the $789–$795 zone integrates Fibonacci resistance with prior price peaks. A breakout above $795 would target the swing high, while rejection may retest $778 (38.2%) support.