Goldman Sachs’ stock has been experiencing significant losses following the collapse of the Silicon Valley Bank on Friday and the broader crisis in the financial sector. However, the price managed to recoup some losses and open higher today, indicating that this steep decline could be overstretched.
The latest bounce to the upside is also promoted by the momentum indicators, which are rebounding from oversold conditions. Specifically, the stochastic oscillator posted a bullish cross within the 20-oversold zone, while the RSI escaped from its 30-oversold territory.
To the upside, if the stock extends its recovery, the price could initially test the recent support region of 335.60, which lies very close to the 200-day simple moving average (SMA). Piercing through that zone, the bulls could aim for 358.30 before the 2023 high of 379.00 appears on the radar. Even higher, the November peak of 389.00 might curb potential upside moves.
Alternatively, should the share price fail to bounce off its recent low, the 307.00 hurdle might act as initial support. Diving lower, the October bottom of 287.00 may provide downside protection. Failing to stop there, the price could decline further to challenge the 2022 low of 277.40.
Overall, Goldman Sachs’ stock managed to temporarily halt its retreat, but the overall technical picture remains bearish. For the sentiment to reverse, the price needs to initially reclaim its 200-day SMA.