The financial sector continues to outperform as the top performing banking stocks continue to help drive the major indexes higher. Companies such as Goldman Sachs released better than expected earnings in January, which has helped the stock continue to climb to resistance levels.
Investment banks in general have performed well, as trading activity and mergers and acquisitions have seen recent improvements. Technically the stocks look strong, and should continue to gain positive momentum.
GS closed above the 200-day moving average on Friday, after the better than expected US non-farm payroll report. The stock price tested resistance near 117.40, and is poised to break higher. A close above 118.00 would target 125.00.
The MACD is showing a positive index level with the spread between the 12-day and 26-day moving averages widening relative to the 9-day moving average of the spread.
The trade – purchase a daily binary option call on a daily close above 118.00.
Signal Summary
Asset : Goldman Sachs
The trade : Binary Call Option
Expiry time : End of day
When : On a daily close above 118.00.
Result : Out of the money
