G-III Apparel Group finds support at $27. Is it a strong buy?

G-III Apparel Group Ltd. (BRN:G14) closed the week at $27.45. The pricing makes GIII a stock to watch. It is equal to three key moving averages, these being MA 10, MA 20, and MA 200. As for MA 50, the level is $29. This analysis asks whether GIII finally caught a bottom and if investors should buy the stock at the current market valuation.

The company’s upward trend picked momentum two weeks ago with earnings that beat expectations. The results signaled a turning point in the performance of the stock, both fundamentally and in the equity markets. The only challenge for the stock is the shaky demand environment as economic pressures reduce discretionary spending.


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GIII finds support at $27

Source – TradingView

On the price chart, GII had its prices under pressure since 2019, when the short-term moving averages slipped below MA 200. Towards the end of 2021, the MA 50 rose above MA 200, but both MA 20 and MA 10 pushed back below MA 200. 

his week and over the last few weeks, the stock has been trading at an equilibrium of $27 for the moving averages except the 50-day. The pattern signals the stock’s growing support at the longer duration’s MA. A rise in the RSI above signal shows that bullish momentum could be gathering traction.

Summary

The analysis finds that GIII is a strong buy as the price pattern reverses. Going by recent earnings guidance, the stock is likely to present improved performance. The share price will report gains as markets recover from current challenges.

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Source: https://invezz.com/news/2022/04/04/g-iii-apparel-group-finds-support-at-27-is-it-a-strong-buy/