Boohoo (LON: BOO) share price has been in a tailspin lately. The shares of the British fashion retailer have perfectly met my price target, as predicted in my last article. The latest analysis reveals that there could be more downside on the cards.
The UK stock market showed a mixed sentiment on Thursday as the FTSE 100 index remained sideways. Till press time, the benchmark FTSE 100 index was up 7 points. However, Boohoo shares were trading at 33p, which was their lowest level since September 2022.
According to the most recent Boohoo news, around 51% of online fashion retailer is currently held by the top 6 shareholders. The insider ownership of the stock is also very high and stands at 23%. Due to the tanking stock price, these whales may be forced to take extreme actions in the coming weeks.
If a few of these institutional investors decide to sell, Boohoo share price may tank even more. In my previous forecast, I predicted the stock to retest the 30p-35p level. This target was met this week as the price plummeted to 33p.
Technical analysis of the LON: BOO chart shows that the shares are forming an inverted cup and handle pattern on the daily chart. This is a very bearish pattern, and a breakdown will make Boohoo share price forecast very bearish. If the price doesn’t recover soon, the bears may target 14p which is the bearish target of the inverted cup & handle breakdown.
The oversold RSI on the daily timeframe is also showing a bullish divergence. This may result in some relief for the bulls. However, to avoid the bearish outlook, the stock needs to reclaim the 38p technical level, which is the neckline of the bearish pattern.
In the meantime, you are also welcome to follow me on Twitter to keep track of my personal trades and the latest analysis on Boohoo shares.
This post was last modified on Jun 14, 2023, 21:13 BST 21:13