Boohoo’s (LON: BOO) share price is gaining strength above a strong resistance level as the bulls keep buying the short-term pullbacks. There seems to be more upside waiting for the shares of the online fashion retailer as the market sentiment around the UK equities is improving.
Last Friday, which was the last trading day on LSE before the Christmas break, the Boohoo shares closed at 41.93p which was almost their highest level since May 2023. On a yearly timeframe, the shares are set to close in 2023 with an 18.35% gain. The price action comes after a 71% correction in 2022.
At one point, LON: BOO was up almost 72% this year. However, a brutal correction which started in April 2023, took it down to 28p, which was the lowest level in the last eight years. Since then, the stock of the online retailer has been performing very well and looks poised to make more gains in the coming weeks.
The key areas of demand and supply have been marked on the following chart. Currently, there seems to be a lot of demand just above 40p. The same region was previously acting as a resistance zone. If this level holds in the coming days, Boohoo share price forecast of 48p might get realized very soon.
The invalidation of this bullish price forecast will be a breakdown below the 40p support level. In this regard, the FTSE 100 index’s ability to remain above 7,695 might play a decisive role.
This post was last modified on %s = human-readable time difference 18:49