Goldman Sachs trade idea: How to play the long term trend decelerating higher

Part 1) introduction

VolatilityMarkets suggests trend-inspired trades that capitalize on market trends.

In the short term Goldman Sachs has been accelerating lower. In the long term Goldman Sachs has been decelerating higher. With the long term trend being the stronger of the two, we propose a long trade idea with a one week time horizon.

Part 2) trade idea details

Buy $ 68,304 USD of Goldman Sachs, take profit at $ 387.9577 level with 50.0% odds for a $ 999 USD gain, stop out at $ 376.7621 with 50.0% odds for a $ 1,000 USD loss through 1w time horizon.

Part 3) GS trend analysis

GS last price was $ 382.36. The long term trend decelerating higher is stronger than the short term trend accelerating lower. This trade goes long when the price was moving higher but decelerating over the past 20 days.

Part 4) GS value analysis

Over the past 20 days, the GS price increased 14 days and decreased 6 days. For every up day, there were 0.43 down days. The average return on days where the price increased is 1.1003% The average return on days where the price decreased is -0.64% Over the past 20 Days, the price has increased by 12.11% percent. Over the past 20 days, the average return per day has been 0.6055% percent.

Part 5) GS worst/best case scenario analysis

Within 1 week, our worst case scenario where we are 95% certain that this level won't trade for GS, is $ 365.7994, and the best case scenario overnight is $ 398.9206. levels outside of this range are unlikely, but still possible, to trade. We are 50% confident that $ 376.7621 could trade and that $ 387.9577 could trade. These levels are within statistical probability.

Key Takeaways:

• Price today $ 382.36.

• Over the past 20 days, the GS price increased 14 days and decreased 6 Days.

• For every up day, there were 0.43 down days.

• The average return on days where the price increased is 1.1003%.

• The average return on days where the price decreased is -0.64%.

• Over the past 20 Days, the price has increased by 12.11% percent.

• Over the past 20 days, the average return per day has been 0.6055% percent.

• Over the past 20 days, The price has on average been decelerating: $ -0.0521 per day higher.

• Over the last session, the price decreased by $ -3.07.

• Over the last session, the price decreased by -0.8029 %.

• Over the last session, the price accelerated by $ 2.74.