Towards the end of August 2018, Goldman Sachs has been losing points. The CEO, Lloyd Blankfein, has submitted his letter of resignation which probably brought down the share price of $GS in August. The confidence of shareholders was shaken by the resignation news. Nevertheless, a new CEO was appointed, with the name David Solomon. Now $GS has decided to buy Turkish and Argentinian government debt. That is indeed a milestone. But it is a high bet on the worst-performing emerging markets.
Investment in emerging markets should bring about high yields. The RSI has a directional change to the buy region, showing a trace for the bull gangs to be active. There is an obvious breakout of the two trendlines upward and the RSI is neither oversold nor overbought. The momentum on the breakout might not be much, but at least it might be a good deal for buyers. Price is already at the upper region of the bands. Buyers should be ready only if it is just a trick by the sellers.
Source: Goldman Fund Buys Turkey and Argentina Bonds Says Rout Overdone (BLOOMBERG)