Eye On Stock - Spritzer


Eye on stock spritzer

Spritzer Bhd (code: 7103) gapped up at Friday’s opening to challenge the 200-day simple moving average (SMA) but erased all its gains to close unchanged at day’s end.

The stock has been facing consolidation pressure ever since it bottomed out at a recent low of RM1.87 on Monday. There have been two attempts thus far to break above the 200-day SMA, but both were unsuccessful. At present, the stock remains at risk of resuming its correction unless buying interest is sustained to make a break above the resistance.

Based on the daily price chart, a breakthrough of the 200-day SMA and the nearby 21-day SMA would see the counter trading above all the key moving averages. This would free the bulls to roam higher towards an initial resistance of RM2, and higher still to a stiffer hurdle of RM2.04.

The RM2.04 mark serves as the 50% Fibonacci retracement level, a crossing of which would suggest strong upward momentum. For the present, momentum remains weak following Friday’s performance. Although the slow-stochastic has risen out of oversold conditions, it is hovering at a low level of 24 points.

The 14-day relative strength index has flattened out above 30 points, also indicating a lack of upward momentum. Meanwhile, the daily moving average convergence/divergence line remains on a downtrend as it heads lower below the zero line.

Based on the trading volume, investor interest in the stock remains tepid as compared to the build up of volume seen in the early December period as the stock built up to a strong rally. This would suggest that there is yet to be a strong catalyst to give the stock the necessary push to break out of the current bearish channel.

At the lower end of the chart, support is found in the RM1.85-RM1.87 range, a negative breach which would signal an extension of the downtrend.

The comments above do not represent a recommendation to buy or sell.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Eye On Stock , Spritzer ,

   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Next In Business News

Geely Auto and Volvo Cars to launch powertrain venture after merger scrapped
Malaysia Airlines to introduce digital travel health pass
Rising aluminium prices lift Press Metal profits�
AEON Malaysia registers RM41.4mil net profit in FY20
AirAsia takes RM320mil hit due to Japan unit bankruptcy
Destini, KTMB in joint venture targeting rail MRO services
DRB-Hicom makes a net profit of RM554mil in FY20
Sunway joins global push for climate-related financial disclosures
Vitrox to expand capacity as Q4 revenue surges to new high�
Strong demand for steel products powers Prestar’s earnings

Stories You'll Enjoy


Vouchers