How are you doing traders. The market has been heating up lately because of one big name which is Goldman Sachs.
News just broke that Goldman Sachs is planning to tokenize their real estate fund by partnering with strong players like Apex, Archax, LRC Group, and Ownera. This news is expected to push the total value of Real World Assets or RWA in DeFi well past its 10.7 Billion Dollar baseline.
On top of that, there is more shocking news. Binance recently launched bStocks which gives access to over 7,000 US stocks and ETFs directly on their crypto app. This move breaks down the wall between traditional stock markets and crypto platforms, which is expected to boost liquidity and likely trigger price volatility in traditional markets.
This is huge news for the ecosystem. But before we talk about the technicals, let's look at their current fundamentals.
From the data above, Goldman Sachs has an Enterprise Value of 1.06 Trillion Dollars. Even though they have a debt burden of 749 Billion Dollars, their capital structure is solid for an institution of their size. They also still pay dividends regularly with a TTM yield of 1.49 percent.
Goldman Sachs Technical Chart Analysis
If we look at the price action, GS just showed an interesting movement after a Break of Structure or BOS. Citigroup recently raised their price target from 765 to 930 even though their rating remains Neutral.
From the daily chart above, we can see an aggressive uptrend structure. For those of you who want to enter, do not just buy blindly. Pay attention to these key support levels.
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Support two or the consolidation zone is in the 938.30 to 918.50 range. This is a crucial area to keep the short term bullish momentum alive.
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Support one or the main zone is in the 792.00 to 762.90 range. This is a much stronger demand area if the market experiences a deeper correction.
Trader Opinion on Market Conditions
Honestly, seeing the price now above 1,041 Dollars, I feel like this price is already a bit too high for short term swings.
Technically it is a strong uptrend, but be careful. Often, fundamental news is sold to the public when the price is at the top so that institutions can exit to retail traders who are suffering from fomo.
My advice is not to get carried away by news headlines. If the price is pumping hard like this, it is better to wait for a retest or a pullback to the support areas I mentioned earlier. Do not let your capital disappear because you got stuck at the top just because of tokenization news.
Stay disciplined and risk management must remain number one.
Source
Posted Using INLEO
