- Summary:
- Boohoo share price has failed to break above 55p level. Bulls need to flip this historic level to unlock more upside.
Boohoo Share price (LON: BOO) has been on an uptrend since the start of 2023. However, there is a key level that the bulls need to flip before targeting more gains. Since the start of the year, Boohoo stock has surged by 41% from its December 2022 bottom of 32.65p.
UK equities have printed massive gains in the past few weeks. The benchmark UK Index FTSE 100 surged above 8000 points for the first time in history. However, the positive price action has been surprising for many investors amid high-interest rates. Although the inflation in US is coming down but it is still far above the Fed target of 2%.
Why Is Boohoo stock falling?
Boohoo clothing is one of the most influential online retail brands with endorsements from many big celebrities. Its shares are listed in London Stock Exchange as LON: BOO and trading at 49.83p. Since its 2022 high of 99.9p, the stock has plunged by more than 50%.
A major reason behind this downtrend is a decrease in sales and a slower-than-expected holiday season. However, despite a slump, the online fashion retailer is still raising the incentives for its executives. Recently, the firm announced a bonus plan of £175 million which also included a £50 million bonus for the CEO.
The recent rally in Boohoo share price appears to be due to the China reopening. The yearly gains could be wiped off soon due to the recent hawkish comments from US Fed.
Boohoo Share Price Chart
Technical analysis of LSE: BOO chart reveals very critical information for long-term investors. The 55p level has been acting as a strong pivot since 2014. The price has been bounced off and rejected from this level many times. Just a few days ago, the price attempted to break this level and got rejected again.
Consequently, the Boohoo share price has tumbled once again and now trading below 50p. Although the price has broken out of the downward trendline it still needs to flip 55 GBX into support. This will also confirm a bullish reversal signaling double bottom on the daily and weekly charts.
