Boohoo share price forecast is not looking very bullish as the supply overpowers the demand in a critical zone. The shares of the UK online retailer are literally hanging by a thread and the 28p level could be the final line in the sand for many investors.
Boohoo shares are trading 17% below their 200-daily moving average which shows that the bears currently have the upper hand. However, the tides can shift in case of a strong bounce from the 33p level which is marked on the following chart.
The recent underperformance by the FTSE 100 index compared to its Western counterparts has led to a mixed market sentiment in the UK shares. As a result, most shares are struggling to make higher highs despite a significant decrease in the UK inflation.
You can see how the demand below 35p is being absorbed by the seller. This demand zone has acted as a major support but has become weak after too many retests. Therefore, if Boohoo share price breaks below this zone the forecast will turn extremely bearish.
This post was last modified on Nov 24, 2023, 17:22 GMT 17:22