On December 18, we mentioned that Goldman Sachs Group Inc (NYSE:GS) broke out of a descending triangle pattern. In the report we took a look at the equivolume chart rather than the candlestick chart because the drop below the support was accompanied by heavy volume - a sign that the bears were taking control of the short-term momentum. The reason we've chosen to take another look at this chart is because the failed move above the trendline suggests that the stock is still facing severe selling pressure and that there is not a technical reason to turn bullish quite yet. Technical traders will watch for the Relative Strength Index to move toward the oversold level (below 30) to confirm that the move below $202.75 level is suggesting that the downward momentum will continue.
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