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Home » Trade Journal » Profitable Trades » 5. SBRY – 11.Nov.16 – 15.Nov.16

5. SBRY – 11.Nov.16 – 15.Nov.16

Weekly Chart


sbryweekly1

My analysis from the weekly chart is as it was before: SBRY has been in a trading range since September 2014 of about 290p at the upper bound to around 220p at the lower bound. I see no indication that SBRY is about to break out of this range any time soon.

Long Daily Chart


sbrylongdaily1

My analysis from this chart is similar to the analysis of it I made the previous evening. As I’ve noted before, this stock moves fairly predictably within its price channel. Upon hitting or exceeding its price channels, it usually snaps back  at least to its 22-day EMA, and often to the other price channel. This stock has a tendency to make large, rapid price moves.

Short Daily Chart


sbryshortdaily3

Recently this stock has undergone a sharp and rather forceful price decline. Its price is now below its lower price channel and is now in the vicinity of a level of support I’ve identified (~232p). Previously, acting under the belief based on erroneous data that the recent downward price moves had been far more forceful than they in fact were, I entered a short position on 11.Nov.16 at 230.3p. When price subsequently rose rapidly to 234p, I checked the historical price data for this stock as documented on the Financial Times and Yahoo! Finance, which showed the selloff to be less dramatic than what I had previously believed it to be. I closed my short at 234.7p and reversed my position.

I will regard any strong move against me to be a signal to close my position and wait for new EOD data to be published before reevaluating if I want to trade this stock and from what side. I am provisionally setting a limit order to close at 240p.

Entry: On 11.Nov.16 I entered a long position at 234.7p.

Exit: I closed this position on 15.Nov.16 at 240.3p for a gross return of +2.39%SBRYShortDaily2.jpeg

Follow-up


sbryshortdaily3

Subsequent price movement since I closed this trade seems to have vindicated my decisions to reverse my initial short position and to close my long position when I did.

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