Undoubtedly, Goldman Sachs is the best Wall Street bank and will benefit from improving market conditions, according to JP Morgan's analysts.
The company again showed better-than-expected results, with investors mostly paying attention to trading revenue.
"The financial sector is one of the few segments on the market expected to be higher than average earnings in 2018, and UBS, Morgan Stanley and Goldman Sachs' investment funds will certainly benefit from it." - said Kian Abouhossein, chief analyst at Morgan Stanley.
Abouhossein raised its price target for Goldman's shares to $280, representing a 6% rise in current levels.
Technically, the price is on an upward trend, and any increase in volatility and stock market slump will be a great opportunity for investors to pay attention to Goldman. Current levels are risky to buy, but as we mentioned, the temporary shocks on the stock market will bring the company's shares to profitable positions. We consider $240 - $250 a suitable buy-in area, where we have several basic support - diagonal, 200SMA, 23.6% Fibonacci correction and short-term horizontal support.
If, however, there is a trade war, financial companies across the ocean can suffer very seriously as their sales have a large exposure abroad and are considered to be the sector most likely to suffer if Europe and Asia decide to turn back to Trump . In that case, it is appropriate to set SL at around $220.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.