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.
