SBRY has been in something of an uptrend over the past month but is well within the trading range established roughly from late 2014 to early 2016. The latest bar on the weekly chart, with its long upward-pointing wick, may signal that the latest uptrend is about to reverse.
Long Daily Chart
The long daily chart shows that SBRY reliably bounces around inside its moving average price channel. On 11.01.17 it breached its channel, putting in an extremely high wick that reached 277.1p before closing lower than it did the previous day. Historically, this type of candle precedes a price decline.
Short Daily Chart
In this chart, in addition to the bearish candlestick formed on 11.01.17, a bearish divergence between price and MACD histogram also appears to be forming. Force index is strongly positive, which in itself is not necessarily a bullish or bearish signal. On the strength of the bearish signals presented by the price channel breach, the bearish candle and the bearish divergence between price and MACD histogram, I have decided to open a short position on 12.01.17. I will set my stop loss at 276.9. I anticipate covering this position when my analysis indicates that the price decline I anticipate is in or is about to reverse. However I will also place a limit order to cover the position at the lower channel bound, currently at 237.47. I will update this limit price on a daily basis and will adjust my stop loss per my rule.
Entry: On 12.Jan.17 I entered a short position at 259.0p
Exit: On 26.Jan.17 I covered my position at 257.5p for a gross return of +0.58%
In retrospect I might have gotten a better price if I had waited a bit longer, but on the whole my exist was fairly well timed.