Goldman Sachs shares drop for the first time in four sessions on Friday, lender to pay $56.5 million in relation with a US rate-rigging lawsuit

According to documents filed in federal court in Manhattan last Friday, Goldman Sachs Group Inc was to pay $56.5 million in relation with a US class action lawsuit. The latter accused several banks, including Goldman, of modulating a benchmark interest rate used in the derivatives market. In May this year, 7 other banks, including JPMorgan Chase & Co, Bank of America Corp, Credit Suisse Group AG and Deutsche Bank AG, came to an agreement to pay a total of $324 million in order to settle the litigation.

Goldman Sachs shares closed lower for the first time in the past four trading sessions on Friday. The stock fell 1.69% ($4.10) to $238.90, with the daily high and the daily low being at $243.19 and $238.40 respectively. In the week ended on December 18th Goldman Sachs shares lost 1.22% of their market value compared to a week ago, which has been the first drop in the past six weeks and also the worst performance since the week ended on October 2nd. The stock has pared its advance to 8.94% so far during the current month, following two successive months of gains. In November Goldman Sachs shares added 23.03% to their value, which has been the best monthly performance since January 2012. Back then the stock appreciated 23.27%.

In the class action lawsuit, a number of pension funds and municipalities accused 14 banks of conspiracy to modulate the “ISDAfix” benchmark rate for their own benefit within the period between 2009 and 2012.

According to the case, banks have entered into quick trades before the above mentioned benchmark was set on a daily basis. These 14 banks also urged UK brokerage firm, ICAP Plc, to delay trades so that they could position ISDAfix at a level of their benefit, while posting rates not corresponding with market activity.

Entities, which are yet expected to settle the litigation, include BNP Paribas SA, HSBC Holdings Plc, Morgan Stanley, Nomura Holdings Inc, UBS AG, Wells Fargo & Co and ICAP Plc.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Goldman Sachs stock are presented as follows:

R1 – $239.34
R2 – $239.78
R3 (Range Resistance – Sell) – $240.22
R4 (Long Breakout) – $241.53
R5 (Breakout Target 1) – $243.07
R6 (Breakout Target 2) – $243.70

S1 – $238.46
S2 – $238.02
S3 (Range Support – Buy) – $237.58
S4 (Short Breakout) – $236.27
S5 (Breakout Target 1) – $234.73
S6 (Breakout Target 2) – $234.10

By using the traditional method of calculation, the weekly levels of importance for Goldman Sachs Group Inc (GS) are presented as follows:

Central Pivot Point – $239.95
R1 – $244.52
R2 – $250.15
R3 – $254.72
R4 – $259.30

S1 – $234.32
S2 – $229.75
S3 – $224.12
S4 – $218.50