Biosensors - Tweezers bottom reversal at key support suggests further upside

Biosensors is likely to see more upside in the days ahead following the formation of a tweezers bottom reversal pattern at the lower boundary of its 8-month uptrend channel and key resistance-turned support level of $0.46.

With the RSI staging a sharp bullish reversal to jump out of the oversold region and the Stochastic indicator also on the verge of doing so, coupled with the OBV indicator rebounding off its 6-month uptrend line again, they suggest that the upside momentum could be building up again.

We expect the rebound to meet an initial resistance at $0.515 (support- turned-resistance level), breaking which, the next key resistance is at $0.585 (2009 high and upper boundary of 8-month uptrend channel)

Below the immediate support of $0.46, the subsequent support is at $0.42 (resistance-turned-support level).

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