Saturday, June 4, 2011

Biosensors -- 4th Jun 11

Biosensors closed $1.28 on 3rd Jun 2011.  After hitting all time high of $1.41 on 9th & 10th May 2011, price has declining and rebounded from $1.24 on 2nd Jun 2011; slightly above the $1.23 support level.

Technically, Biosensors still within the downtrend channel but a breaking out from $1.29 will breakout from the downtrend channel.  Sign of possible breaking out is there with the RSI already cut up and was testing the breakout level on 3rd Jun 2011.  A breakout from the downtrend channel could see it re-testing the all-time high level at $1.41.  What need to be observed is breaking out with high volume.  Another point to note is the long term trend of Biosensors still in uptrend and with its 50d EMA still above 100d EMA and in turn above the 200d EMA, this has made Biosensors one of the few still "strong" stocks in STI.

With a downside of $1.23, potential upside of $1.41 and with reference to $1.28, this gives a rewards to risk ratio of 2.6x.  A note, if Biosensors is able to break the all-time high price at $1.41, it will has the ability to move up even higher.  Hence the rewards to risk ratio could be more than 2.6x if such scenario happens.

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