Goldman Sachs Stock Price: Why Are Traders Selling Despite Blowout Earnings?

Goldman Sachs stock price is trading lower, despite reporting better-than-expected second-quarter earnings. 

A boost from its asset management and investment banking divisions helped the bank earn $15.02 per share in Q2 2021, which blew past the estimate of $10.04 per share. It was also a hefty recovery from the pandemic-influenced earnings of $0.53 per share a year ago. Revenues climbed from $13.3 billion to $15.39 billion.

Despite the results, Goldman Sachs stock price is down 2%, after the US Consumer Price Index soared above expectations, reviving talk of an early tapering by the Fed, which could dry up the cheap cash that has served the banks and the capital markets very well.

Technical Outlook for Goldman Sachs Stock Price

The Goldman Sachs stock price prediction was for price to break above the neckline of the double bottom. However, this has not played out and the daily candle touched off the resistance at the 384.71 price mark (50% Fibonacci extension from the 29 March to 3 June price swing). 

This rejection prevented the break of the neckline; thus the pattern remains incomplete. A breakdown of 372.97 (25 May/16 June highs) allows for a further dip towards 352.65. If the decline continues from here, then 343.16 becomes a new target, and the pattern is invalidated.

On the other hand, a bounce from 352.65 following a decline to this level sets up a potential triple bottom pattern. The neckline remains the key level to beat to complete either the initial double bottom or a new triple bottom. If this occurs, a measured move towards 405.91 could be on the cards. This move would depend on a break of 384.71 and 393.46.

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Goldman Sachs: Daily Chart

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