Is August a good month for investing in Goldman Sachs shares?

The Goldman Sachs Group, Inc. (NYSE: GS) shares continue to trade in a bull market after strong second-quarter results. The second-quarter results contributed to the highest-ever first-half revenues of $33 billion and net earnings of over $12 billion; however, the Delta variant of the coronavirus continues to pose downside risks.

Fundamental analysis: The board of directors approved a 60% increase in the quarterly dividend

Goldman Sachs reported better than expected second-quarter results last week, and according to the technical analysis, shares of this bank remain in a buy zone. Total revenue has increased by 15.7% Y/Y to $15.39 billion, while GAAP EPS for the same period was $15.02 (beats by $5.07).

It is important to say that the Investment Banking segment had its second-highest quarterly net revenues of $3.6 billion while the revenues from the Financial Advisory segment were $1.3 billion. Total revenue has increased above the expectations (+3.22 billion), and the board of directors approved a 60% increase in the quarterly dividend to $2.00 per common share.

This dividend will be payable on September 29 to stockholders of record as of September 1, 2021, and the current dividend yield stands at 2.2%. The bank reported a net income of $5.5 billion for the second quarter, while the second-quarter results contributed to the highest-ever first-half revenues of $33 billion and net earnings of over $12 billion.

During the second quarter, Goldman Sachs received preliminary approval for a joint venture with ICBC, China's largest bank, representing a significant opportunity for Goldman Sachs to grow internationally.

Goldman Sachs shares could advance above the current price levels in August 2021; still, the Delta variant of the coronavirus continues to pose downside risks. Goldman Sachs investment banking segment received a boost from a post-COVID focus on corporate expansion, but the global economy could be hit again by the new lockdowns.

Technical analysis: $380 represents the first resistance level

If the price jumps above $380, it would be a signal to trade shares, and the next target could be around $400. Rising above $400 supports the continuation of the bullish trend for Goldman Sachs shares, but if the price falls below $340, it would be a strong "sell" signal.

Summary

Goldman Sachs reported better than expected second-quarter results last week, and the board of directors approved a 60% increase in the quarterly dividend. Goldman Sachs shares continue to trade in a bull market, but if the price falls below $340, the next target could be around $320 or even $300.