FlowTrades Blog Articles

Is Goldman Sachs Reversing?

Shares of Goldman Sachs Group, Inc. (NYSE:GS) closed Friday's trading session lower by $1.79 or -1.24% from its previous close. Goldman's shares price action formed what is considered to be a doji close, where the open and close prices are very close to each other, mainly signaling an indecision between buyers and sellers.

The Goldman Sachs Group, Inc. (NYSE:GS), a bank holding company, is a global investment banking and securities firm specializing in investment banking, trading and principal investments, asset management and securities services. The Company provides services to corporations, financial institutions, governments, and high-net worth individuals.

Goldman's current stock range is defined by a trough, which marks calculated support at $134.2 and by a peak that marked the resistance point at $146.4. These levels are closely watched by traders managing their positions.

Traders wanting to establish a position in Goldman Sachs or traders that are already holding the stock can use the doji close to their advantage, since the pattern present a short term pause in the stock's price action. This pause results in an entry point for traders depending of which way the stock resolves this short term indecision.

Doji are important candlesticks that provide information on their own and as components in a number of important patterns. Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns.

Any bullish or bearish bias is based on preceding price action and future confirmation. In the case of Goldman Sachs, given that the stock finished the session lower, bears should monitor the stock, as it could reverse if it manages to trade above today's intraday high.

Boeing Bearish Signs

Shares of Boeing Co. (NYSE:BA) ended Friday's trading session lower by $0.95 or -1.46% from its previous close. Boeing's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

The Boeing Company , together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company's family of the commercial jet aircrafts includes the 737, 747, 767, 777, and the new generation 787 Dreamliner. Boeing is based Chicago and founded in 1916.

Boeing's current stock range is defined by calculated support defined at $60.61 and by the resistance level at $65.41, which should be used by traders planning their trades.

Traders wanting to establish a position in Boeing stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Boeing shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal.

MGM MIRAGE Bullish Engulfing Formed

Shares of MGM MIRAGE (NYSE:MGM) ended the trading session higher by $0.65 or 5.52% from its previous close. MGM MIRAGE's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.

MGM MIRAGE (NYSE: MGM) has significant holdings in gaming, hospitality and entertainment, owns and operates 16 properties located in Nevada, Mississippi and Michigan. The company, through a joint venture, owns and operates the urban development City Center in Las Vegas Strip.

MGM MIRAGE's recent stock range has been formed by a trough where calculated support was defined at $12.50 and by a peak that established the resistance level at $15.08, which could be used by traders planning their trades.

Traders wanting to establish a position in MGM MIRAGE or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.

Potash near Resistance

Shares of Potash Corporation of Saskatchewan Inc. (NYSE:POT) are trading very close to calculated resistance at $105.50, with the current price action closing at just $102.41, placing the stock near levels that make it difficult to buy.

Potash Corporation of Saskatchewan Inc. (NYSE:POT) produces potash, phosphate, and nitrogen for the agricultural and industrial industries worldwide. The Company operates in Canada, Chile, the United States, Brazil, and Trinidad.

Potash's current stock range is defined by current calculated support defined at $95.55 and by the resistance level at $105.50, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Potash, as the stock is well above support, however, as the stock pulls back towards $95.55 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $105.50 then traders will get an opportunity to enter Potash stock by establishing a position as the stock moves to a higher range.

Is AK Steel Trade Over?

Shares of AK Steel Holding Corporation (NYSE:AKS) ended Friday's trading session lower by $0.41 or -2.58% from its previous close. AK Steel's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

AK Steel Holding Corporation (NYSE:AKS), through its subsidiaries, produces flat-rolled carbon, stainless, and electrical steels, and tubular products primarily in the United States and internationally. The Company produces coated, cold rolled, and hot rolled carbon steel for the automotive, appliance, construction, and manufacturing markets. AK Steel also cold rolls and aluminum coats stainless steel for automotive industry customers. Key Statistics

AK Steel's current stock range is defined by calculated support defined at $18.32 and by the resistance level at $19.81, which should be used by traders planning their trades.

Traders wanting to establish a position in AK Steel stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current AK Steel shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal.

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