Kornit is a disrupter in the world of fast fashion which makes digital printing technologies for the textile industry
Among top IBD 50 growth stocks, Kornit Digital (KRNT) is one to watch this week as shares pull back to test a key area of support.
Kornit, a disrupter in the world of fast fashion, makes digital printing technologies for the textile industry. It produces high-speed industrial inkjet printers, and pigmented ink and chemical products for the garment and apparel, home goods, and textile accessories decorating industry.
Shares have been on a tear in 2021, up 84% year to date (YTD). The growth stock scored a breakout in June from a cup-with-handle base. Shares didn’t immediately take off from the proper entry, but showed promise after several successful tests of the 50-day line.
Holding support at the 50-day or 10-week line is a bullish indicator. Since becoming extended from this most recent breakout, Kornit is still holding above the 50-day moving average. Currently, the stock has moved up to test support at its 21-day line.
On Nov. 17, the stock sold off in high volume as shares finished below the 50-day line for the first time since the June breakout. The sell-off was triggered after Kornit announced a 2.2 million share offering. In the days following, however, shares bounced back in heavy volume to reclaim support.
The stock has tumbled this week, trading down more than 7% so far. But the pullback offers investors a possible buying opportunity as shares slip back into the buy range of the rebound from 10-week support.
Kornit holds an excellent 96 Relative Strength Rating, indicating it is in the top 4% of performers in IBD’s stock universe. In addition, the growth stock has a 96 Composite Rating from IBD.
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