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Tuesday 27 May 2014

Biosensors - watch for break out

Recent rally in market seem to have hit some form of break at current level, similarly for Biosensors. The stock seem to be consolidating at its previous resistance high of 1.02. This is the third time in past 9 months that it has hit this resistance high. However this time, its seems to be third time lucky, as price seem to be holding well at current level coupled together with a huge increase in volume.

Though stochastic seem to have pulled back slightly from oversold region, price seem to be gaining momentum, as MACD is in positive region and seems to be pulling away from its signal line. Watch to see if price is able break out from current level. Look out for a break up above 1.04 with volume, for further upside, with price aiming for above 1.10. The 20 EMA has moved above its 200 EMA to form the first golden cross. Look out for its 50 EMA to form the second golden cross above its 200 EMA for further confirmation. Crossing above could signal a confirmation of changing into uptrend mode. Upon entry, cut loss could be set @ 0.925 (12%).















Enjoy and Cheers!

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