As mentioned in our previous Boohoo (LON: BOO) share price forecast, it is still struggling to break above 57 GBX. On Thursday, the company’s shares opened at 56 GBX. The selling pressure persisted throughout the day, and Boohoo UK shares closed at $54.86. Nonetheless, this was still a 0.48% price increase from yesterday.
Most UK shares kept trading sideways on Thursday, 9th March. The benchmark UK index FTSE 100, showed negative price action and closed the day with a 0.63% loss. It closed at 7880 points, which is the lowest level in the last 8 trading sessions. It will be tough for the Boohoo share price to surge if the FTSE 100 index keeps trading below 8000.
Boohoo Group PLC is one of the biggest fashion retailers with a global footprint. Boohoo UK currently has a market capitalization of £696 million. Its low share price makes it one of the most popular shares to hold on the London Stock Exchange. Boohoo shares trade under the ticker LON: BOO.
As per the most recent news, Boohoo CEO and other top executives are going to bag bonuses worth millions. The company’s plan to incentivize its staff with a whopping £175 million got approved this week by the shareholders. It was the same plan which had been previously discarded twice due to the tanking share prices.
Nonetheless, 37% of the shareholders still voted against the decision making it more controversial. As a result, Boohook CEO John Lyttle is set to receive £50 million. The co-founder Carol Kane and the CFO Shaun McCabe will also bag £20 million & £25 million, respectively.
Although LSE: BOO is trading above the key psychological level of 50 GBX, it is still struggling to break above a key supply zone. The resistance at the 57p level appears to be an iron wall as Boohoo share price has failed to break through it despite several attempts.
The black line in the following chart shows the point where repeated rejections have taken place. One sigh of relief for the bulls is the fact that the price is still trading above 200-day MA. This can change very quickly if the price closes this week below $57p.
This post was last modified on %s = human-readable time difference 18:50