Goldman Sachs (NYSE: GS) shows a bullish weekly sequence, supported by an Elliott Wave structure. The move began from the April 2025 low and developed into a five-wave advance.
Wave III reached 984, followed by a three-wave pullback in wave IV. This correction ended in March 2026 at 984, and the price then formed an initial five-wave advance in wave ((1)).
The wave ((1)) rise did not move above the prior peak. As a result, the wave ((2)) pullback needs to remain above the March 2026 low to keep the pattern intact.
If that level holds, the structure allows for a rally in wave V and a move to new all-time highs. The next upside leg is projected to target the $1035–$1114 zone.
After that target zone is reached, the analysis expects a larger-degree correction. A separate technical outlook is provided via a video.
We see a strong bullish pattern forming in Goldman Sachs after its advance from the April 2025 low. The stock is currently in a minor pullback, which we view as a wave ((2)) correction. This dip presents a strategic entry point before the anticipated next leg up.
For derivative traders, this setup suggests buying call options in the coming weeks. Specifically, consider slightly out-of-the-money calls with expirations in July or August 2026 to capture the potential rally. The current pullback phase should offer more attractive entry prices before momentum builds again.
This technical view is supported by strong recent fundamentals. Goldman Sachs reported a 15% year-over-year surge in investment banking revenue in its Q1 2026 earnings call, beating analyst expectations. This performance, driven by a rebound in M&A activity, reinforces the case for institutional buying pressure.
The broader market environment is also favorable, with the CBOE Volatility Index (VIX) falling below 15 last week for the first time since late 2025. This indicates growing market stability and investor confidence following the Federal Reserve’s recent signal to hold interest rates steady through the summer. Lower market volatility generally supports upside in market-leading financial stocks.
The critical level to watch is the March 2026 low. A break below this point would invalidate the immediate bullish outlook, making puts a necessary hedge for any long positions. Traders could use a breach of this support as a signal to switch from a bullish to a bearish stance.
Implied volatility on GS options is currently subdued compared to the spikes we witnessed in 2024, making long call strategies relatively inexpensive. As the stock begins its next move toward new highs, we anticipate volatility will expand. Therefore, establishing positions now, during this period of consolidation, is advantageous.
If the March low holds, our price targets for the next major advance are in the $1035 to $1114 zone. Traders should plan to take profits on long call positions as the stock enters this target area. We anticipate a more significant market correction will begin once this wave V is complete.
