Thursday, March 31, 2011

Biosensor

Biosensor, after forming a low in the February market correction, the stocks rallied and break above the upper downtrend line forming a “high” point and then retrace to form another low. As this low point is higher than the February low, this is what we mention by a “Higher Low”. Having the 2 low points we can connect the 2 points to draw a uptrend support line for this stock, if there is more than 20 trading day(1month) between the 2 point, we will consider this as a mid-term trend. Another point to note is that this stock make a Higher low when STI is forming a lower low, this show that this stock has a “Stronger” trend than the market(STI). As market now is in overbought region, suggest to buy less than normal position if you want to buy.

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