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Tickers in this Article: GS

Today we've chosen to take a look at the equivolume chart of Goldman Sachs Group Inc (NYSE:GS) because the price has broken out of a descending triangle pattern. As you can see from the chart below, today's move below $202.75 will be used to suggest that the bears are taking control of the momentum and that the stock is getting ready to make a move lower. We've chosen to take a look at the equivolume chart rather than the standard candlestick chart because it clearly illustrates that heavy volume (shown by a wide bar) has been accompanying the moves lower and light volume (shown as a thin bar) has been prominent on the moves higher and near the resistance of the triangle.

Today's breakdown on heavy volume is the reason why we'll maintain a short-term bearish outlook on this stock. We'll watch for a drop in price to cause the RSI to move toward the oversold level below 30. We'll reevaluate this position once the RSI enters oversold territory.

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