Goldman Sachs Group is a bank holding company and financial holding company. Co. operates in four business segments: Investment Banking, which is engaged in financial advisory, underwriting and corporate lending activities; Global Markets, which consists of Fixed Income, Currency and Commodities and Equities, and engaged in intermediation and financing activities; Asset Management, which is engaged in the management, equity investments, lending and debt investments; and Consumer and Wealth Management, which consists of Wealth management and Consumer banking, and engaged in the management and other fees, incentive fees, private banking and lending, and consumer-oriented activities.
When researching a stock like Goldman Sachs Group, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from GS Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for GS stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the GS 200 day moving average ("GS 200 DMA"), while one of the most popular "shorter look-backs" is the GS 50 day moving average ("GS 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Goldman Sachs Group. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the GS 200 DMA and the GS 50 DMA, we get a moving average convergence divergence indicator ("GS MACD"). The GS MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis