Goldman Sachs (GS) appears to be approaching an important technical decision point following a completed Elliott Wave advance and subsequent correction. The larger structure currently suggests the possibility that a major Wave 3 could develop, with an eventual upside target in the 1,750–1,800 region. However, the bullish scenario depends on a critical breakout: GS must clear 1,111, which represents an important .786 Fibonacci breakout level in the current structure.
The Elliott Wave roadmap begins with a powerful Wave 1 advance from approximately 780 to 1,153. This represented a substantial 373-point rally, establishing the first major impulsive leg of the proposed bullish sequence. After reaching 1,153, GS entered a correction that brought the stock down to approximately 970, completing the proposed Wave 2.
The decline from 1,153 to 970 represented a significant pullback, but it did not invalidate the larger bullish Elliott Wave structure. In Elliott Wave theory, Wave 2 can be deep and psychologically difficult because it retraces a meaningful portion of the initial Wave 1 advance. The critical requirement is that Wave 2 does not completely retrace the entire Wave 1 move back through its origin.
That condition remains intact in this proposed structure. The advance began near 780, and the Wave 2 correction found support around 970. With the Wave 1 origin remaining well below the Wave 2 low, the possibility remains that the correction was simply a reset before the next major impulsive advance.
This is where 1,111 becomes the most important number on the chart.
A move through 1,111 would represent a major technical development because this area marks the proposed .786 Fibonacci breakout level. Fibonacci retracement levels are frequently used to identify whether a recovery has enough strength to transition from a corrective bounce into a new impulsive trend. In this case, GS has already rebounded from the 970 low, but the market still needs to demonstrate that the buyers have enough strength to reclaim the higher portion of the prior decline.
That is why 1,111 is the trigger.
If GS remains below 1,111, the market could still be experiencing a broader consolidation or a temporary recovery within a more complicated correction. Elliott Wave structures do not always move in a perfectly simple pattern, and a stock can experience multiple rallies and declines before the final corrective low is confirmed.
But if GS decisively breaks above 1,111, the interpretation changes.
A successful breakout would suggest that the advance from 970 is gaining enough momentum to challenge the previous 1,153 high. The prior Wave 1 peak at 1,153 would then become the next major resistance level. A move through 1,111 would be the first major confirmation, while a subsequent breakout above 1,153 would provide even stronger evidence that GS has completed Wave 2 and entered a new bullish impulse.
The potential reward is significant because the next proposed Elliott Wave is Wave 3.
In a standard five-wave Elliott sequence, Wave 3 is often the most powerful and sustained portion of the entire advance. It is the wave where the broader trend becomes increasingly obvious and where momentum can accelerate as investors who doubted the original rally begin recognizing that the correction may be over.
For GS, the proposed Wave 3 target is 1,750–1,800.
That target represents a major move from the 970 Wave 2 low and would require a sustained bullish advance. It should therefore be viewed as a larger Elliott Wave objective rather than an immediate prediction that the stock will move in a straight line from 1,111 to 1,800. A Wave 3 can contain multiple internal corrections and smaller Elliott Wave subdivisions along the way.
The important point is that the structure has the potential to expand dramatically if the market confirms the breakout.
The entire setup can be summarized through three major stages. First, GS completed a proposed Wave 1 from 780 to 1,153. Second, the stock corrected in a proposed Wave 2 from 1,153 to 970. Third, the market is now attempting to establish the next impulsive advance, with 1,111 serving as the critical .786 breakout level.
If that level breaks, the market could begin building the momentum necessary for a much larger Wave 3.
Traders should also pay attention to how GS behaves around the breakout rather than focusing exclusively on whether it trades a few points above 1,111. A brief move through resistance followed by an immediate reversal would be less convincing than a sustained breakout in which GS can hold above the level and continue making higher highs and higher lows.
A decisive breakout would strengthen the argument that the correction from 1,153 to 970 is complete. It would also place the prior 1,153 peak directly in focus. Once that previous high is challenged, the market would have an opportunity to demonstrate that the proposed Wave 3 is gaining traction.
This creates a clear technical hierarchy.
First confirmation: 1,111.
Major resistance and Wave 1 high: 1,153.
Wave 2 low: 970.
Larger Wave 3 target: 1,750–1,800.
The 970 level remains especially important from a structural perspective because it marks the proposed Wave 2 low. As long as the market continues building upward from that region, the bullish interpretation remains viable. The deeper the stock falls back toward that low, however, the more the market would need to prove that the larger correction has actually ended.
For now, the immediate focus remains on the upside breakout.
The 1,111 level could represent the dividing line between an ordinary rebound and the beginning of something much larger. A .786 retracement breakout can signal that buyers have regained substantial control of the previous decline. If GS clears this level and holds the breakout, the probability of a challenge toward 1,153 increases.
A break above the previous 1,153 Wave 1 high would then create an even more bullish technical picture. At that point, GS would have recovered the entire Wave 2 decline and established a new high above the previous impulsive peak. That would be consistent with a developing Wave 3 structure.
The ultimate target zone of 1,750–1,800 remains the major objective in this Elliott Wave scenario. Reaching that region would represent a substantial expansion from the current structure and would confirm that the stock entered a powerful new phase following the correction to 970.
There are no guarantees in technical analysis, and the target depends on the market following the proposed wave structure. The most important thing is to let the price action provide confirmation rather than assuming Wave 3 has already begun.
Right now, the roadmap is clear.
GS completed a proposed Wave 1 rally from 780 to 1,153, followed by a proposed Wave 2 decline from 1,153 to 970. The stock is now approaching the key 1,111 .786 Fibonacci breakout level. If GS decisively breaks that resistance, the next major level becomes 1,153, followed by the larger Wave 3 target zone of 1,750–1,800.
For bullish traders and investors watching the Elliott Wave structure, 1,111 is therefore the number that matters most. A confirmed breakout could mark the transition from correction back into impulse and potentially begin the next major advance in Goldman Sachs.
The potential roadmap remains:
Wave 1: 780 → 1,153
Wave 2: 1,153 → 970
Wave 3: 1,750–1,800 potential target
Key breakout confirmation: 1,111 at the .786 Fibonacci level
If 1,111 breaks decisively, GS could be preparing for a much larger move. The eventual prize in this bullish Elliott Wave scenario is the 1,750–1,800 region, making the upcoming breakout attempt one of the most important technical developments to watch.