The risk reward ratio is pretty sweet when you factor in analyst ratings being well above the risk/reward levels outlined here.
I did no DD for this - strictly chart patterns. Set stopp losses should it fall under support but the support levels are quiet significant here.
This is one of those that you hold for a while, then suddenly theres just a big pop in...
Chembio Diagnostics Inc is a company that develops, manufactures, and commercializes point-of-care diagnostic tests that detect infectious diseases. The products of the company include rapid tests for the detection of HIV 1/2 antibodies and a multiplex rapid test for the detection of HIV and syphilis antibodies. The company offered rapid medical tests that are...
2 possible outcomes.
1. Cup and handle forms, to the moon.
2. Couldn't break the resistance and support don't held up and break below.
I think scenario 1 is the most likely case, since we have been consolidating 5-6$ range, long enough to build a strong support, and all indicators showing positive sign.
What Is a Short Squeeze?
A short squeeze occurs when a stock or other
asset jumps sharply higher, forcing traders who
had bet that its price would fall, to buy it in
order to forestall even greater losses. Their
scramble to buy only adds to the upward
pressure on the stock's price
*A short squeeze accelerates a stock's price rise
Chembio Diagnostics, Inc., together with its subsidiaries, develops, manufactures, and commercializes point-of-care (POC) diagnostic tests that are used to detect or diagnose diseases. The company offers tests for HIV and Syphilis, and Zika virus.
Support at $5 (Fic retracement) 0.236
Ma 50 support
Growing lows ($3.00 - $4.00 - $4.50)
target is going to be this gap-fill once EUA news is released. We are about 91 days I believe. Once FDA approves we will have a great chance that this sees the gap fill. Big buyers stepping in, shorts covering.
CEMI is in the healthcare diagnostic space and was recently approved to market its Covid test in Brazil. I like the 9ema crossing the 50sma and also the MACD cross. Also I think the close above the 23.6% Fibonacci level the last 2 trading days is bullish.
$5.70 target short term.