The Goldman Sachs Group, Inc. (GS) shares fell more than 3% during Monday's session after the financial giant reported mixed first quarter earnings. Revenue fell 12.6% to $8.81 billion, missing consensus estimates by $80 million, but earnings per share came in at $5.71, beating consensus estimates by 69 cents per share. The company also increased its quarterly dividend by five cents to 85 cents per share.
The move comes after many other banks reported strong gains during the first quarter. JPMorgan Chase & Co. (JPM) stock rose nearly 5% on Friday after the bank reported better-than-expected results thanks to its consumer and community banking operations. However, Wells Fargo & Company (WFC) cast some doubt on the longevity of these strong results after its CFO issued disappointing guidance for net interest income.
From a technical standpoint, the stock briefly broke out from an ascending triangle pattern before closing below key resistance levels. The stock broke down from R1 support at $203.46 during Monday's session but remains above key support levels. The relative strength index (RSI) fell from overbought levels to 54.72, but the moving average convergence divergence (MACD) appears to be losing some of its momentum. These indicators suggest a lot of uncertainty about future direction.
Traders should watch for some consolidation between trendline and 200-day moving average resistance at $207.61 and trendline, pivot point and 50-day moving average support levels at $196.56. If the stock breaks out from trendline resistance, it could retest its highs made late last year. If the stock breaks down from support, traders could see a move lower to S1 support at $183.51 over the coming sessions. However, the overall trend remains bullish for the time being.
The author holds no position in the stock(s) mentioned except through passively managed index funds.