Naked Brand Stock Is Nearing Resistance In Ascending Triangle Pattern

Naked Brand Group LTD. NAKD shares were trading higher Wednesday as retail traders show renewed interest in the stock. Naked Brand has been a popular stock with traders from Reddit and Discord groups; the renewed interest likely comes after the large move in AMC Entertainment Holdings Inc. AMC along with other Reddit stocks.

Naked Brand was up 30.44% at 83 cents at last check.

Below is a technical analysis of the chart.

Naked Brand Daily Chart Analysis

• Naked Brand looks to be nearing resistance in what technical traders may call an ascending triangle pattern.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock has been bullish.
• These moving averages may hold as an area of support in the future.

Key Naked Brand Levels To Watch

• The ascending triangle pattern is a bullish continuation pattern that occurs when higher lows are squeezed between a flat top resistance.
• The stock has formed higher lows since late April, these higher lows have been slowly building up toward a flat top resistance.
• The 75-cent level has held as resistance previously and now the stock is testing the area it has previously been unable to break above.

What’s Next For Naked Brands?

Bullish technical traders would like to see the stock break out of the ascending triangle pattern and see an upward push. Following a breakout, bulls would like to see the stock consolidate and continue to form higher lows.

Bearish technical traders would like to see the stock fall below the higher low trendline. A cross below this trendline could signal that bears are taking control and the stock may see a strong downward push.