Goldman Sachs shares fall the most in a week on Tuesday, bank’s new consumer loans may reach $13 billion in three years

According to a statement by Marty Chavez, Goldman Sachs Groups Chief Financial Officer, on Tuesday, the value of the banks new consumer loans may reach $13 billion during the upcoming three years through its Marcus on-line lending business.

Goldman Sachs shares closed lower for the sixth time in the past eight trading sessions on Tuesday. It has also been the steepest daily loss since November 7th. The stock went down 1.26% ($3.03) to $237.24, after touching an intraday low at $235.63, or a price level not seen since October 17th ($235.19).

In the week ended on November 12th the shares of the bank holding company lost 1.74% of their market value compared to a week ago, which marked the largest drop since the week ended on October 15th.

The stock has extended its loss to 2.16% so far during the current month, following a 2.23% surge in October. The latter has been a second consecutive month of gains.

For the entire past year, Goldman Sachs shares rose 32.86%. However, the stock has dipped 0.92% so far in 2017.

Launched in October 2016, Marcus offers loans ranging between $3 500 and $30 000, with its targeted clientèle being credit card borrowers who can take advantage of consolidating their debt into one loan, on which a lower interest rate is usually charged.

In a speech at the Bank of America Merrill Lynch financial conference in New York yesterday, CFO Chavez claimed that lending through Marcus had already exceeded $2 billion.

Meanwhile, Harit Talwar, Goldmans head of digital finance, responded to recent concerns that the financial group could be making an entry in the consumer lending business at a moment when credit conditions might turn out to be unfavorable.

“Were aware the credit cycle wont remain as benign as it had been”, Harit Talwar said, cited by Reuters. “We are very vigilant and we are not growing as fast as demand is. … We are declining a lot more (loans) because we want to build the business in a measured pace”, he added.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Goldman Sachs’s stock price, have a median target of $250.00, with a high estimate of $287.00 and a low estimate of $190.00. The median estimate is a 5.38% surge compared to the closing price of $237.24 on November 14th.

The same media also reported that 17 out of 28 surveyed investment analysts had rated Goldman Sachs’s stock as “Hold”, while 9 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

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 – $237.72
R2 – $238.20
R3 (Range Resistance – Sell) – $238.68
R4 (Long Breakout) – $240.11
R5 (Breakout Target 1) – $241.79
R6 (Breakout Target 2) – $242.50

S1 – $236.76
S2 – $236.28
S3 (Range Support – Buy) – $235.80
S4 (Short Breakout) – $234.37
S5 (Breakout Target 1) – $232.69
S6 (Breakout Target 2) – $231.98

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 – $240.89
R1 – $244.24
R2 – $248.32
R3 – $251.67
R4 – $255.01

S1 – $236.81
S2 – $233.46
S3 – $229.38
S4 – $225.29