Paul J Singh

I bought 500 shares of GLD at $61.40. In all honesty, the stock is a mixed bag technically. On the positive side, we have the 50 day crossing the 200 day moving average, MACD is improving and the stock held up at it’s gap point. Negatives include a power spike to the downside earlier this week with a low volume rise (dead cat bounce?) and weak RSI. What I like about the trade is that I can use a low risk entry, with a stop placed just under the 200 day MA at $61, which also happens to be where price action would dictate placing a stop. The upside target is $64, which would give me a 10:1 risk/reward, losing $.40 to try to gain $4.00. Not bad.

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