Goldman Sachs shares fall the most in three months on Wednesday, bank reports its first quarterly loss in six years due to tax charge

Shares of Goldman Sachs Group Inc (GS) plummeted the most in three months during yesterdays trade in New York after the bank reported its first quarterly loss in six years as a result of considerable tax charge. On the other hand, quarterly adjusted earnings outstripped market expectations, as strong performance of the groups investment banking division mitigated the effect from lower trading revenue.

Goldman Sachs shares closed lower for the first time in the past six trading sessions on Wednesday. It has also been the steepest daily loss since October 17th. The stock went down 1.86%($4.81) to $253.65, after touching an intraday low at $248.87, or a price level not seen since December 11th ($248.76).

In the week ended on January 14th the shares of the bank holding company added 0.59% to their market value compared to a week ago, which marked a second consecutive period of gains.

The stock has neutralized earlier advance and is now down 0.44% so far during the current month, following a 2.88% surge in December. The latter has been a fourth consecutive month of gains.

For the entire past year, Goldman Sachs shares rose 6.39% following another 32.86% surge in 2016.

Total revenue at the groups fixed income, commodities and currency unit shrank 50% during the latest quarter from a year ago, dragged down by weaker net revenue from operations with currencies, commodities and credit and interest rate products.

On the other hand, investment banking revenue, including IPO, underwriting and Mergers & Acquisitions advisory fees, went up 44% year-on-year to $2.14 billion during the past quarter.

Overall results were impacted by a $4.40 billion charge from the recently-passed reform of the US tax system. As a result, the bank posted a loss of $2.14 billion ($5.51 per share) during the quarter ended on December 31st after a profit of $2.15 billion ($5.08 per share) during the same three-month period a year ago.

Goldmans earnings per share, excluding the tax charge and special items, were reported at $5.68 during the fourth quarter. In comparison, analysts on average had expected earnings of $4.91 per share.

Meanwhile, the groups revenue, including net interest income, dropped 4% to $7.83 billion during the fourth quarter. The latter compares with a median analyst forecast of $7.61 billion.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Goldman Sachs’s stock price, have a median target of $267.50, with a high estimate of $308.00 and a low estimate of $190.00. The median estimate is a 5.46% surge compared to the closing price of $253.65 on January 17th.

The same media also reported that 16 out of 29 surveyed investment analysts had rated Goldman Sachs’s stock as “Hold”, while 9 – as “Buy”. On the other hand, 2 analysts 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 – $254.81
R2 – $255.97
R3 (Range Resistance – Sell) – $257.12
R4 (Long Breakout) – $260.60
R5 (Breakout Target 1) – $264.65
R6 (Breakout Target 2) – $266.52

S1 – $252.49
S2 – $251.33
S3 (Range Support – Buy) – $250.18
S4 (Short Breakout) – $246.70
S5 (Breakout Target 1) – $242.65
S6 (Breakout Target 2) – $240.78

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 – $255.32
R1 – $259.01
R2 – $261.00
R3 – $264.69
R4 – $268.39

S1 – $253.33
S2 – $249.64
S3 – $247.65
S4 – $245.67