OSI Systems is coming near to a strong resistance area and could be driven in a correction phase.
From a technical viewpoint, the proximity of the USD 71.4 medium-term resistance limits the upside potential of the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.
Due to the technical configuration and a bad fundamental situation that does not justify the current valuation of the group, investors can open a short position. The price target is set at USD 62.5 and a stop loss will be placed above USD 71.35.
OSI Systems, Inc. through its subsidiaries, is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. The Company sell its products and provide related services in diversified markets, including homeland security, healthcare, defense and aerospace. The Company operates through three divisions: Security, Healthcare, and Optoelectronics and Manufacturing. Security division is engaged in providing security and inspection systems and turnkey security screening solutions. Healthcare division is engaged providing patient monitoring, cardiology and remote monitoring, and connected care systems and associated accessories. Optoelectronics and Manufacturing division is engaged in providing specialized electronic components and electronic manufacturing services for its Security and Healthcare divisions, as well as to third parties for applications in the defense and aerospace markets, among others.
OSI SYSTEMS, INC. 
