This Penny Stock Is Creeping Up To A Key Technical Level

Naked Brand Group LTD. NAKD moved higher Friday, likely after shareholders voted for approval of the proposed transaction to divest its Bendon brand brick-and-mortar operations. Another recent development from the company includes an appointment of a new chief financial officer, Mark Ziirsen, as of April 19, 2021.

Naked Brand Daily Chart Analysis

• Naked Brand stock looks to be testing a key level where it has previously held as resistance. The stock has been forming higher lows throughout the past six months.
• The stock is trading below the 50-day moving average (green) and above the 200-day moving average (blue), indicating the stock is most likely facing a period of consolidation.
• The 50-day moving average may hold as a place of resistance on the chart, and the 200-day moving average is a potential area of support.

Key Levels To Watch

• In May 2020, the stock held the $0.60 level as support. Later in the year the stock broke down below this level and tested its resistance a handful of times.
• Late January 2021 saw a breakout above this level before the stock eventually fell back below.
• The stock is now looking to test this level again, and consolidation above the level could let this stock see higher moves.
• The stock began trading with higher lows in November 2020, and can be seen in the trendline on the chart above.

What’s Next?

Bullish technical traders would like to see the stock break above the resistance line and consolidate. Consolidation above the $0.60 level could let the stock see a breakout.
Bearish technical traders would like to see the stock fall below the $0.60 level. If the stock is able to break below the trendline, it could see a further downwards push.

Naked Brand had over 50 million shares traded Friday, and notably, a large amount of activity.

Some other penny stocks that traded at that volume on Friday include: Sundial Growers Inc. SNDL, Sypris Solutions Inc. SYPR, Castor Maritime Inc.  CTRM and Jaguar Health Inc. JAGX.

Image by makingmilly from Pixabay.