Goldman Sachs reported very good earnings and revenue numbers. Both beating analysts expectations. However, the stock is currently trading lower at $160.97 -2.36 (-1.44%). The drop on earnings was probably one of the easiest predictions that could have been made. Why? The stock ran from $138 - $164 in the two weeks prior to earnings. In other words, the stock was already factoring amazing earnings, far better than expectations. In addition, the daily chart of Goldman Sachs was kissing the daily 200 moving average. The two factors of the stock being extremely overbought and into the daily 200 moving average put the odds of a pull back at north of 95%. Even with great earnings, Goldman Sachs is following through and pulling back.

By Pro Trader

Markus Teller