Abandon-Baby Top on Goldman Sachs could be a bad sign
Investment banking giant Goldman Sachs (NYSE: GS) reported first-quarter earnings results on Monday and the results were a disappointment to investors. The company posted earnings of $5.71 per share on revenue of $8.81 billion. Analysts were expecting the company to earn $4.74 per share on revenue of $8.97 billion.
The stock fell 3.82% on the day as investors processed the information. What was really interesting is what the gap lower did to Goldman’s chart. The stock gapped higher on Friday after JPMorgan beat on earnings and revenues as investors expected similar results for Goldman. Instead, the stock gapped lower on Monday and that left Friday’s candle alone—it didn’t touch Thursday’s candle or Monday’s candle.
This pattern is known as an abandon-baby top and it is viewed as a sign of more bearish action going forward.
The overall fundamentals for Goldman are below average in several aspects. The earnings fell by 18% in the first quarter compared to last year’s results and sales were down 2%. Both of those figures are below average.
The company’s return on equity is at 11.6% and that is average to slightly below average. One area where Goldman is above average is its profit margin of 23.8%.
Goldman is also below average on its price performance over the past year. The Relative Price Strength Price Index from Investor’s Business Daily is a 28. This means that 72% of stocks in IBD’s database have outperformed Goldman in the past year.
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Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
GS in downward trend: 10-day moving average moved below 50-day moving average on July 31, 2026
The 10-day moving average for GS crossed bearishly below the 50-day moving average on July 31, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 18, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GS as a result. In of 75 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GS turned negative on August 19, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
GS moved below its 50-day moving average on August 06, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GS advanced for three days, in of 351 cases, the price rose further within the following month. The odds of a continued upward trend are .
GS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 287 cases where GS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.758) is normal, around the industry mean (4.401). P/E Ratio (16.048) is within average values for comparable stocks, (21.328). Projected Growth (PEG Ratio) (1.475) is also within normal values, averaging (1.691). Dividend Yield (0.016) settles around the average of (0.032) among similar stocks. P/S Ratio (4.869) is also within normal values, averaging (17.980).
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General Information
a provider of investment banking, securities and asset management services
Industry InvestmentBanksBrokers
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