Boohoo (LON: BOO) share price is showing signs of weakness as it slid down below the key level of 37.6p on Monday. The price consolidated above 37.6p for a few weeks before breaking down below 36p. Currently, the shares of the online fashion retailer stand at 35.73p.
The breakdown can be attributed to the decline in the FTSE100 for two consecutive weeks. At press time, the index sits at 7388 points which is 2.6% below last week’s high. For the British share prices to see any bullish movement, it is critical for FTSE100 to show some strength.
British shares have been experiencing increased selling pressure as the UK announced wage data for the second quarter. The data showed a 7.8% increase in wages, throwing analyst expectations out the window. The data hinted at more interest rate hikes by the Bank of England.
On 19th July, Boohoo announced their increased stake in Revolution Beauty Group. The British online fashion retailer announced a 27.13% stake, an increase from the previous figure of 26.47%. Boohoo share price is currently 41.3%, down from its yearly high of 61p.
The chart for LON: BOO shows the price consolidating under the 37.6p level after trading above it for a few days. The price seems to be making its way down toward the demand zone between 30p-35p, which I mentioned in my previous Boohoo share price forecast.
The bulls should be careful, as the demand zone is the last major support before 21p. If the price breaks below the demand zone, it will be the bears’ time to shine, as they would be in full control. For the bulls to see any upside, the price must reclaim the 37.6p resistance level. If that happens, the bulls can hope for a retest of the 48.5p level.
In the meantime, I’ll keep sharing updated Boohoo forecasts and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Aug 15, 2023, 16:13 BST 16:13