High volatility in Naked Brand Group Inc. stock price on Wednesday which ended trading at $0.82StockInvest.us, 4 months ago
The Naked Brand Group Inc. stock price gained 28.96% on the last trading day (Wednesday, 2nd Jun 2021), rising from $0.63 to $0.82. , and has now gained 7 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the day the stock fluctuated 34.37% from a day low at $0.63 to a day high of $0.85. The price has risen in 6 of the last 10 days and is up by 36.33% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 357 million more shares were traded than the day before. In total, 434 million shares were bought and sold for approximately $354.71 million.
The stockhas broken the very wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is $0.56, a level that may pose a second chance to hit a runner. According to fan-theory $0.86 will be the next possible trendtop level and thereby pose a resistance level which may not be broken on the first attempt.
The Naked Brand Group Inc. stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $0.61 and $0.58. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, May 12, 2021, and so far it has risen 62.66%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.
On the downside, the stock finds support just below today's level from accumulated volume at $0.71 and $0.64.There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Naked Brand Group Inc. finds support just below today's level at $0.71. If this is broken, then the next support from accumulated volume will be at $0.64 and $0.62.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.22 between high and low, or 34.37%. For the last week, the stock has had a daily average volatility of 16.11%.
Since the Naked Brand Group Inc. has been rising for 7 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.
Naked Brand Group Inc. holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy Candidate to a Hold/Accumulate candidate.Check full Naked Brand Group Inc. forecast and analysis here.