Goldman Sachs: potential forming triangle

Here is the 2.5x3 (ie 7 points) closing P&F on Goldman Sachs. The long term blue bullish support line remains in tact for now but recent action suggests (IMO) that the stock is going to trend lower.

We have a potential forming triangle on this chart. To qualify as a triangle, the pattern must have 5 columns - there are currently four.

Usually a stock in an UPTREND will resolve the triangle to the upside and vice versa. According to P&F guru Tom Dorsey, breakouts from a triangle formation typically result in explosive moves.

The most recent column of 0's was reversed by the latest column of 3 x's and has left an unactivated downside target of $102.5. It will be activated if Goldman's share price falls below $135, filling the $135 box. A fall below $130 would take out the previous level of support and would lend strength to the bearish case/lower target.

To the upside, a move up beyond $157.5 would give a double top buy signal and a price target of $200. But in the absence of a Fed inspired major dose of QE2, its hard to see what other catalyst could propel GS's price to that level in what remains a generally poor economic climate.