Swing Trade - Serabi Gold

This is a breakout play. Gold has been ripping higher over the last 12 months, and prior to that. Serabi Gold, a UK Listed junior gold minor has been benefiting from it's operational leverage tapping into gold's rising price. The strong uptrend started around Jan 2024, and it's moved from 40p to nearly 250p. But there's still opportunity. The chart taps into a 'step stair' style formation. Periods of consolidation followed by a pop up to the next level/step.

Whilst the trend the mature, there's a period of consolidation. Volume dries up and the price breakout out of this range on higher volume. Take a buy, stop below the consolidation area and look to see if you can ride the 21 day EMA.

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How Did It Pan Out?

The Breakout on Volume (BOV) from the above chart pushed on well, but it wasn’t a long swing trade. The stop was wider than we’d normally like — around 15% versus our preferred maximum of 7%. To control risk, we halved the position size. That set a target of around 30%, maintaining our usual 2:1 reward-to-risk ratio before taking initial profits.

The price reached 2R but couldn’t extend further. The stop had been raised a couple of times — first to break even (SBE), then trailed higher. When price closed below the 21 EMA (blue line), we tightened the stop to just below that candle’s low. The price kept falling, and without action, the position could have turned negative.

This is why we sell into strength on swing trades — never let a solid profit turn into a loss. The remaining two-thirds of the position was closed when price broke the red line (below the low of the candle that had closed under the 21 EMA).

Trade Summary

• £5,000 bought 2,040 shares at £2.45

• The position grew to £6,081 (+21%)

• 1/3 sold at £2.98, bringing in £2,006

• Remaining 1,346 shares sold at £2.50, for £3,336

• Total proceeds: £5,342

• Net profit: £342 (+6.48%)

It may not sound huge, but the key is controlled risk and consistent compounding. A 6.48% return in just 29 days (21 trading sessions) equates to an annualised gain of around 121%.

This trade reinforces the importance of selling into strength, protecting profits, and keeping your swing trading account compounding upward.