GOLDMAN SACHS PROFIT BEATS ESTIMATES, STOCK SPIKES
Goldman Sachs is currently trading at 219.48-higher by about 1.80% as compared to the previous closing. In Pre-market trading on Tuesday, the stock was trading higher by 2.30%. The stock has cut some of its earlier gains after the opening bell.
Goldman Sachs reported its Q3 earnings before the market open on Tuesday which beat market expectations. The bank reported EPS of $6.28- above the market expectation of $5.38. Bank’s revenues for Q3 were $8.65B- above the market estimates of $8.40B. Revenues rose on better-than-expected results in the firm’s investment banking, investing and lending and investment management divisions.
Investment-banking revenue rose 10% from a year earlier to $1.98B in revenue, exceeding the $1.8B estimate. Revenues rose on better-than-expected results in mergers advisory and capital markets underwriting. The bank’s CEO said in a statement that Year-to-date EPS is the highest in the bank’s history and Year-to-date return on equity is the highest in nine years.
On the technical front, the RSI is currently at 40.44% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger bands but is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 219 TAKE PROFIT AT 221 STOP LOSS AT 218