- Summary:
- Boohoo Share Price Forecast: LON: BOO appears to be heading for another retest of the 200 MA on its daily chart which lies at 47.67p.
Boohoo (LON: BOO) share price is having a major pullback after a 72% price rally in 2023. This made Boohoo UK shares one of the best-performing stocks of this year. Our analysis shows that while the bulls are still in control, the bears have started to gain strength.
On Thursday, Boohoo share price turned red for the third day in a row. The price opened higher, but the sell-off took the price below its opening. Nevertheless, at press time, the price was still trading 0.24% above yesterday’s close. Since the start of April, the price has fallen by more than 13% after a rejection from the 61p level.
Boohoo UK Appoints New Board Member
According to the most recent news, Boohoo Group has appointed John Goold to its board as an independent non-executive director. Goold is currently the CEO of Kelso Group Holdings plc while also serving as a non-executive director of Oncimmune Holdings plc. Boohoo UK and other UK retailers are currently facing headwinds from the rising inflation.
In a major move, Bank of America has downgraded its rating of Boohoo Group. The financial giant has lowered the Boohoo share price target from 75p to 40p. This means the bank expects at least a 20% price drop from current levels. However, the technical analysis reveals that there is still time for the bulls to orchestrate another leg up.
Boohoo Share Price Forecast
The daily chart of LON: BOO reveals a few critical levels of supply and demand. The major resistance lies at 55.8p level, which has resulted in multiple rejections. Currently, the price appears to be heading for a retest of the 200 MA, which lies at 47.67p on the daily chart.
A breakdown below this level will make Boohoo share price forecast bearish for at least the short term. The only way to avoid this outlook is to break above the 55.8p level. The upcoming UK inflation data and the interest rate decisions by the Bank of England will keep the price in check in the coming months.
I’ll keep sharing my updated price outlook on Boohoo & other stocks in my free Telegram group, which you’re welcome to join.
