02-05-2021 Portsmouth, Hampshire, UK A Mobile phone or cell phone being held showing the boohoo app open on screen
Boohoo (LON: BOO) share price is still trading sideways and there has been very little to no change since I last covered the topic. While this accumulation phase might appear quite boring, this is not the time to ignore this stock. Such phases often result in major bullish moves.
Shares of most UK companies are in a downtrend as the benchmark FTSE 100 index has just had 6 consecutive red days. The streak is unlikely to be broken today as the index is once again showing weakness. Nevertheless, Boohoo shares rose 2% today but the stock keeps trading within the critical demand zone.
As per the latest Boohoo news, the online fashion retailer has drafted a letter to the AIM regulator against Revolution Beauty. The dispute started when the cosmetics company reappointed three executives immediately after their removal last month. Boohoo share price has remained unaffected during this saga.
Boohoo currently holds 26.6% stake in Revolution Beauty and has requisitioned a second EGM for the company. According to the reports, Boohoo wants assurances that the voting decisions of the forthcoming EGM will be upheld and not overturned.
As mentioned in my previous forecasts, there is a strong demand between 30p-34p levels. Currently, the shares are retesting this demand zone. After this accumulation, a reclaim of 37.6p level will signal a bullish reversal with a potential retest of 48p in sight.
On the other hand, Boohoo share price forecast will become very bearish if it breaks down below current accumulation range. In such a case, I expect the price to fall within the 20p-25p region which is the next demand zone. A deeper pullback in FTSE 100 index may act as a catalyst for this move.
In the meantime, I’ll keep sharing updated Boohoo forecast and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Jul 11, 2023, 14:25 BST 14:25