This Penny Stock Bounced At A Key Technical Level And Is Heading Back Up

Naked Brand Group LTD. NAKD moved higher Friday after the company announced results from its "extraordinary general meeting."

On April 23, shareholders voted for approval of the proposed transaction to divest Bendon brick-and-mortar operations.

Below is a chart analysis on the 15-minute timeframe. Click Here to see the zoomed-out daily chart analysis.

Naked Brand 15-Minute Chart Analysis

• Naked Brand's stock was able to test and hold a key level as support where it has previously held as resistance. The stock has been forming higher lows throughout the past six months.
• The stock is trading above both the 50-day moving average (green) and above the 200-day moving average (blue) on the 15-minute timeframe, indicating the stock’s short-term sentiment is most likely bullish.
• Short term, both of these moving averages may hold as an area of support.

Key Levels To Watch

• After crossing back above the $0.60 level, the price was able to rise up to around the $0.75 level before falling back down.
• Now this $0.75 level may hold as short-term resistance as the stock has struggled to get over this level short term.
• After being able to hold the $0.60 level, the stock may be able to find support at this level again.

What’s Next?

Bullish technical traders would like to see the stock break above the resistance line and consolidate. Consolidation above the $0.75 level could let the stock see a higher push.

Bearish technical traders would like to see the stock fall back below the $0.60 level. If the stock is able to fall back below this level, it could see a steep downwards drop.

Naked Brand had over 50 million shares traded Friday, and considerably, a large amount of activity. Some other penny stocks trading with over 50 million share volume Friday include Sundial Growers Inc. SNDL, Farmmi Inc. FAMI, and Motus GI Holdings Inc. MOTS.