The selloff in Naked Brand Group Limited (NASDAQ:NAKD) may have ended and the stock has reached 50 cents. This level has been support in the past and there’s a chance it will become so again.
Support is a large concentration or group of buyers who are looking to pay the same price for shares. In this case, it’s 50 cents.
At support levels, there is more demand for a stock from the buyers than there is supply from the sellers. This is why stocks stop going lower when they reach them.
Naked Brands found support and rallied to 50 cents five times this year. There’s a chance it happens again.
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