Retailer Naked Brand Group Inc. (NAKD) entered into a January 2017 merger agreement with New Zealand intimate apparel manufacturer Bendon that will require new stock issuance after shareholder approval. The news ignited a vertical buying spike to $3.68, followed by a steep decline to $1.14 at the start of February. Dip buyers emerged at that level, triggering a second rally impulse that reached a 16-month high at $4.75. It’s been pulling back for the last 3-weeks and should find aggressive buying interest at or above the 200-day EMA just below $2.00.
