Swing trade series post 1, GLD (SPDR Gold Trust)
What is GLD?
SPDR Gold Trust is an ETF that follows gold, and an alternative to trading XAU/USD (gold/us dollar).
Technical analysis
As of today, the overall trend is bearish (on the daily timeframe), and there is a strong support (now resistance) above the stock price. The target is the newest support made by GLD when it broke below the current resistance. The stop-loss is just above the current resistance. The entry is right below the resistance.
Other details
This trade can make around 3.8% profit, with a risk of only 1.9% (below the recommended maximum capital risk of 2%). It has a risk to reward ratio of 2, meaning the reward is twice as high as the risk. This is a swing trade and will take around a 1-2 weeks to complete.
Final thoughts
I’ve decided to make a series of swing trade ideas along with educational posts (I’m currently working on one and will make them public every Sunday. Unsurprisingly, they take a lot of time and effort to finish considering the research that needs to be done, so once a week is my timeframe). If you want, you can put in the comments a stock you want analyzed and most likely it will be the subject of the next post (unless there are a lot of suggestions, in which case I will pick one with the best trading opportunities). Good luck and great trading!
*This is not financial advice, although if you agree with my analysis you can always take the trade.
SPDR Gold Trust is an ETF that follows gold, and an alternative to trading XAU/USD (gold/us dollar).
Technical analysis
As of today, the overall trend is bearish (on the daily timeframe), and there is a strong support (now resistance) above the stock price. The target is the newest support made by GLD when it broke below the current resistance. The stop-loss is just above the current resistance. The entry is right below the resistance.
Other details
This trade can make around 3.8% profit, with a risk of only 1.9% (below the recommended maximum capital risk of 2%). It has a risk to reward ratio of 2, meaning the reward is twice as high as the risk. This is a swing trade and will take around a 1-2 weeks to complete.
Final thoughts
I’ve decided to make a series of swing trade ideas along with educational posts (I’m currently working on one and will make them public every Sunday. Unsurprisingly, they take a lot of time and effort to finish considering the research that needs to be done, so once a week is my timeframe). If you want, you can put in the comments a stock you want analyzed and most likely it will be the subject of the next post (unless there are a lot of suggestions, in which case I will pick one with the best trading opportunities). Good luck and great trading!
*This is not financial advice, although if you agree with my analysis you can always take the trade.
Trade closed: stop reached