Naked Brand Group Flew Higher Up Into Resistance Friday

Naked Brand Group Ltd. NAKD shares were trading higher Friday, moving after the company’s chairman and CEO announced the company believes it has found an opportunity in the clean technology sector.

Naked Brand closed up 15.04% at $0.68 at market close Friday.

Naked Brand Daily Chart Analysis

• Shares saw a large gap higher but were rejected at a previous resistance level and moved back lower later in the day.
• The stock was rejected at the $0.75 level as this has been an area where the stock struggles to cross above in the past. The stock is showing a possible support level near the $0.50 level. These levels may continue to hold in the future.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been moving up the past few days and now sits at 62. This is showing that more buyers are entering into the stock. The stock is nearing the overbought range where the amount of buying pressure greatly exceeds selling pressure.

See Also: Why Naked Brand's Stock Is Surging Today

What’s Next For Naked Brand?

Bullish traders are looking to see the stock continue to push higher in the coming days and be able to break above the resistance level that has been showing. Bulls are then looking for a period of consolidation above the $0.75 level for a possible second push higher.

Bearish traders are looking to see the stock begin to fall after being rejected at the resistance level. Bears then want to see the stock fall below the $0.50 level and begin to hold this area as resistance for possible further downward movements.

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