Near the end of September 2015 I mentioned through twitter that $GS was about to make a final 5th wave downwards and then pull back up in a 3 wave corrective formation towards the 61.8% Fibonacci retracement of the decline.
Again in October 26th I tweeted that the upside correction was not over and we should expect prices to move higher towards the 61.8% Fibonacci retracement.
After a 5 wave decline and a three wave bounce we usually see a reversal at the 61.8% Fibonacci retracement. As in this case we are right at the 61.8% Fibonacci retracement and bulls should be very cautious. GS has reached an important price level where I would not be looking to go long but instead I would be looking for price patterns of weakness and then I would start opening short positions.
With RSI and full Stochastic Oscillators at overbought levels last seen when price was at 200-210$ before the steep decline to 170$, I have GS at my list for short trades. I now expect a trend reversal from current levels that will eventually break the September lows.
As always, thank you for taking the time to read my latest post.