Goldman and Berkshire Stand Out After Big Bank Earnings: What the Charts Show -- Barrons.com

By Doug Busch

Banks traditionally kick off earnings season, and this week started the reports.

So far, the results are a mixed bag, pointing to a resilient U.S. economy, strong equity trading due to volatility, and solid net interest income from higher rates and loan growth. But some IPOs were held back in the quarter, a setback for bank fees, and there was caution about the overall economy from leaders like JPMorgan Chase CEO Jamie Dimon.

Big bank Q3 earnings delivered a mixed picture across the sector. Goldman Sachs scored a clear beat driven by strong equity trading and investment banking fees, while Morgan Stanley posted record wealth management revenue and net new assets.

Citigroup and Wells Fargo also reported upside surprises against analyst estimates. Conversely, Bank of America missed expectations and incurred regulatory fines, while JPMorgan Chase logged a rare earnings miss.

Despite mostly benign underlying fundamental results, price action was universally weak, with each stock down 2% to 6% on the week heading into Thursday, except for JPM, which traded up fractionally.

This disconnect between solid earnings and sell-on-the-news price action presents a temporary headwind, but the broader structural macro picture remains supportive.

Historically, major bank equities demonstrate low correlation to the tech-heavy Nasdaq, effectively capping downside risk if tech-driven volatility persists. This relative insulation suggests that any further drawdown in megacap technology will not necessarily trigger a secondary liquidation phase across the major financials.

Against that backdrop, is there opportunity in Goldman Sachs or another name like Berkshire Hathaway? Lets take a look at their charts to determine if so.

Looking at Goldman Sach's daily chart, price action trades 24% below its 52-week peak following a topping bearish evening star completed on July 16. Encouragingly, a bullish MACD crossover has formed from deep below the zero line, signaling an early shift in underlying momentum.

The last time this crossover triggered from depressed levels in March, it catalyzed a massive $350 rally over four months that occurred during a cup-with-handle base above its $952.11 pivot on May 13.

Constructive candlestick signatures are accumulating following this extended pullback, marked by a doji on Oct. 1, a hammer on Oct. 7, and a second doji on Wednesday.

Tuesday's session also registered massive volume, suggesting a potential capitulative exhaustion floor if buyers assert control here. While the stock is down 2% week-to-date, putting it on track for its second six-week losing streak in five years, historical precedent offers a strong bullish signal. The last occurrence in autumn 2023 yielded an immediate 13% single-week surge the first week of November that year.

This daily setup provides an exceptional risk-managed entry. Good risk reward exists in this $875 area. The stock could reach $1,300 by the second half of 2027, a 48% gain from current prices. Remain bullish above $840.

Goldman Sachs was trading around $875 Thursday.

Turning to Berkshire Hathaway, the top weight in the State Street Financial Select Sector SPDR Fund, price action displays remarkable resilience relative to the broader banking cohort, supported by its substantial cash reserve that positions the conglomerate to capitalize on market dislocations. On the weekly ratio chart against XLF, it has constructed a clear double-bottom pattern since April, following a broader three-year relative uptrend.

From a price perspective, its multiyear uptrend remains exceptionally strong. After clearing a $308.25 double-bottom trigger in November 2022, shares surged over $200 into May 2025, where a multi-month cup-with-handle base subsequently formed. The current handle pivot of $537.84 was established during the week ending Aug. 14, which recorded a bearish engulfing candle.

A decisive weekly close above this handle pivot would carry a measured move to $625 by mid 2027, a 18% gain from current prices. Remain bullish above $515.

Berkshire Hathaway was trading around $528 Thursday.

Doug Busch is the senior technical analyst at Barron's Investor Circle. His technical view is added to stock picks, including those published exclusively for Investor Circle readers. A glossary of technical terms is updated regularly with new entries.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

October 15, 2026 13:37 ET (17:37 GMT)