The multinational investment banking firm that engages primarily with institutional investors emerge since February and looks to reach its end 2013 peak.

Goldman Sachs is financially healthy. Strong profitability and predictability ratios grant a positive outlook of investors on the financial group. Its undervaluation (P/E ratio of 10.7x for 2014 and 9.92x for 2015) should motivate investors for long position taking. Moreover, The EPS for 2014 has been upward revised from USD 14.87 to USD 15.75, this made by analysts polled by Thomson-Reuters for the last 12 months.

Technical patterns are encouraging. Having already tested the midterm resistance at USD 179.4 the stock downturned and rowed a path directly to the support at USD 159.8. After that, a small consolidation process took place and now the stock is on its way back to test by second time the same resistance, which represents our current target. The 20 and 50-week moving averages should help to reach it on sessions to come.

According to both technical and fundamental analysis, the timing seems suitable for long position taking at current prices. The bullish trend should allow the security to reach the USD 179.4 resistance. A stop loss will be placed under the short term resistance at USD 169.8.