GS Stock Had A Different Swing Trading Strategy
Usually with swing trading, our holding time doesn't go beyond a couple of weeks. In the case of Goldman Sachs stock, we did something a little different.
Financial stocks were an area of outperformance in the market rally that started in November. We chose Goldman Sachs (GS) as a way to increase exposure to that sector along with a position in regional banks.
After GS stock had earnings, it found support near its 50-day moving average line and broke above a downtrend line (1). We added it to SwingTrader that day.
It was a tough hold in the first few days. GS stock started the day strong but closed well off its highs in the middle of its trading range.
While the next few days were up, GS stock remained below the high of its entry day. Then it dropped more than 3% and looked like it would have a decisive close below its 10-day line (2). We removed a third of the position out of caution. With it so close to the 50-day line we gave it a chance …
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