Date: October 10, 2024
Broker: CGS International Securities Malaysia Sdn. Bhd.
Company Overview
Spritzer Berhad is an investment holding company involved in the production of various types of water, including natural mineral water, carbonated flavored water, distilled water, and drinking water. Additionally, Spritzer manufactures and sells Polyethylene Terephthalate (PET) bottles, toothbrushes, and plastic household goods.
Technical Buy Recommendation
Spritzer Berhad (7103) is highlighted as a technical buy, with a recommended entry price between RM2.70 and RM2.80. The stock has shown signs of strong potential for new highs, bolstered by favorable technical signals.
Key Technical Indicators
- Support Levels: RM2.56 and RM2.48
- Resistance Levels: RM2.90 and RM3.00
- Stop Loss: RM2.55
- Target Prices: RM2.90, RM3.00, RM3.08 (Fibonacci Target)
The stock has been consolidating near the RM2.80 level for the past four months. On the day prior to this report, a long white candle marked a closing price at the 52-week high, indicating a bullish breakout. This price movement was supported by an increase in trading volume, further suggesting potential upward momentum.
Positive Momentum Indicators
- Triangle Breakout: Indicates a likely push to new highs, supported by the formation of higher highs and higher lows from the RM2.34 low.
- Moving Average Convergence Divergence (MACD): Hooked upward, suggesting a strong bullish momentum.
- Relative Strength Index (RSI): Also pointed upward, indicating a possible further bullish rally.
Analyst Commentary
According to the CGS analysts, aggressive traders might consider entering long positions at the current price level or during any weakness. A stop-loss should be set at RM2.55, slightly below the 50-day EMA. If the stock successfully breaks through the resistance levels, it could test RM2.90 and RM3.00, with a Fibonacci target of RM3.08 if both resistance levels are breached.
Broker’s Outlook
CGS International Securities Malaysia Sdn. Bhd. remains bullish on Spritzer, forecasting a potential push to new highs in the near future, supported by strong technical indicators and increasing trading volume. Traders are advised to watch for a breakout above the resistance levels, as it could signal further gains.
