Boohoo (LON: BOO) share price is on the rise once again. The British online fashion retailer is facing some serious tailwinds from the decreasing inflation in the country. The latest analysis reveals more upside for the stock in the coming days.
On Tuesday, FTSE 100 index slid by 0.11% in the opening hour, extending its weekly loss to 0.25%. The move can be attributed to the pullback in the energy sector due to a correction in oil prices. Nevertheless, Boohoo shares turned green on Tuesday and was up 1.72% till press time.
The retail sector in the UK is having a breather due to a significant decrease in inflation in the past 3 months. Inflation has come down to 7.9% from double-digit growth a few months ago. This has triggered a bounce in the Boohoo share price, which I forecasted in my previous analysis.
According to the latest news, Frasers Group has raised its stake in Boohoo plc. The sports and IP company acquired more shares on Friday, increasing its stake from 6.78% to 7.8%. This could be one of the reasons behind the 2.34% surge in the Boohoo stock on Friday.
If you’ve been following my weekly LON: BOO analysis, then the ongoing rally must not be surprising to you. I precisely predicted a bounce from the 30.5p-35p demand zone weeks ago and now expect more upside in the coming days.
My Boohoo share price forecast is still bullish for the short term. I anticipate a retest of the 200-day moving average in the coming days. This key moving average currently lies at 43.6p, which is more than 10% above the current price of 39.27p.
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 %s = human-readable time difference 10:02