Markets can think, technicals cant (March 19, 2009)

I wish to share with you one observation I made regarding GS. Notice that GS tested 105 today and there was no spike in today's volume. To me, this shows that the sellers are still holding back or they could have sold off their shares when GS was beaten down.

105 is a key resistance because over 112 million share worth more than 12 billion was traded on 18/09/2008.

In the coming days, I see that GS could go higher to test the highs...maybe up to 116
Beyond that, I think GS could possibly reach 150 this year once all the highs have been retested.



I think a similar concept could be applied to MS, the only difference is MS is now free to go for somewhere above 30 at anytime the market is ready to push this stock higher.