If my eyes are not lying, this chart above (click to enlarge) is tracing out a descending triangle, a bearish formation. Its base, as it happens, is also where GS gapped up on high volume on 9/19/07, when people were starting to think (hope against hope is more like it in retrospect) that the whole subprime implosion was just a bad summer nightmare after all, that everything would be OK and that in any case Goldman was immune to all that nonsense.From what the chart is telling us, should this base give way for good (conveniently, the base is a round number: 200), we would be expecting at least a 50 point drop (the height of the triangle) and a test of the August low at 157.
No comments:
Post a Comment