Naked Brand Group Ltd. (NASDAQ:NAKD) shares are trading lower Wednesday as the stock made a 1-For-15 reverse split. The reverse split was done to meet a minimum share price required for the company’s acquisition of Cenntro Automotive Corp and Cenntro Electric Group.
Naked Brand was down 11.30% at $6.41 at publication time.
See Also: Naked Brands Undertakes Reverse Split, Acquisition Of Cenntro: What Investors Need To Know
Naked Brand Daily Chart Analysis
- The stock has fallen below support in what technical traders call a sideways channel. Using the adjusted prices from the reverse split, the stock is showing key levels at the $7 and $11.50 prices. As the stock has fallen below these prices, it may hold as areas of resistance in the future.
- The Naked Brand stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) made a move higher and sits at 45 on the indicator. This shows there are slightly more sellers in the stock than there are buyers.
What’s Next For Naked Brand?
Naked Brand looks to have made some gains back after gapping lower this morning. The stock is headed back toward the $7 level and may see some resistance near this area.
Bulls are looking to see the price cross above the area and for the stock to hold this level and begin to make higher lows.
Bears are looking to see the $7 level hold as resistance and for the stock to be unable to break above and follow with a move lower.
