Goldman Sachs Group Inc. (NYSE: GS) shares rose on Monday Dec 5 with lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile, the Dow Industrials on Monday opened at an all-time high as investors dismissed concerns about the outcome of Italy’s referendum on Sunday.
The Dow Jones Industrial Average rose DJIA, +0.41% 85 points, or 0.5%, at 19,260, the S&P 500 index SPX, +0.42% began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index COMP, +0.43% advanced 27 points, or 0.5%, at 5,282.
Analysts at HSBC initiated coverage on Goldman Sachs Group Inc. (NYSE: GS) stock, starting the company at Buy. With a rating of Buy on the shares, the company has a 52-week high of $228.99. The one-year price target of $206.84 is a decrease compared to the opening price of $225.68, causing a fair amount of other analysts to comment on the company recently. After initiating coverage,, analysts and brokerage firms will subsequently publish periodic updates. Price changes targets are not unheard of.
Shares of Goldman Sachs Group Inc. (NYSE: GS) opened at $225.68 on Tuesday trading between $225.24 and $228.99, and last traded at $228.89, a jump of $5.53 or 2.48% from the previous closing price.
Goldman Sachs Group Inc. (NYSE: GS) now has a market cap of 95.86B.
Goldman Sachs Group Inc. (NYSE: GS) Average Daily Trading Volume
819,363 shares traded hands yesterday, below the average, out of a total float 372,564,000. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to pinpoint large volume growth or circulation by institutional investors.
While an increase in trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series of days or weeks expresses a positive cue to market traders that institutions may be moving in, so institutional sponsorship is critical.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors have teams of analysts that research thousands of stocks, so it is good validation to see them taking a postion in a stock you are researching.
Goldman Sachs Group Inc. (NYSE: GS) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Goldman Sachs Group Inc. (NYSE: GS) now has a 50-day MA of $192.80 and 200-day MA of $168.04. It has traded in a 52-week range between $138.20 – 228.99 and today’s last price is 0.04%% lower than the 52 week high of $228.99.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings by at least 25% for the past 3 years.
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