Goldman Sachs (GS) is in a holding pattern, forming a symmetrical triangle. The characteristic of this type of triangle is that a breakout of breakdown can happen on even 50/50 odds. The result, breakout or breakdown, will be the continuation of the direction of that move. High-risk traders can take a gamble and get in now an hope that they're right, but I prefer to wait for the definite move and trade the result which is a more low-risk trade. The green lines indicate the nearest support and resistance areas to guide you to where GS will eventually head to.
Saturday, October 4, 2008
READER'S REQUEST - Goldman Sachs (GS)
Goldman Sachs (GS) is in a holding pattern, forming a symmetrical triangle. The characteristic of this type of triangle is that a breakout of breakdown can happen on even 50/50 odds. The result, breakout or breakdown, will be the continuation of the direction of that move. High-risk traders can take a gamble and get in now an hope that they're right, but I prefer to wait for the definite move and trade the result which is a more low-risk trade. The green lines indicate the nearest support and resistance areas to guide you to where GS will eventually head to.
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2 comments:
You could always straddle/strangle the stock with options.
that's very true. I would just find another lower risk, high probable entry trade like the shorts I entered in a post below.
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