Boohoo share (LON: BOO) share price is experiencing an increased selling pressure at a very critical resistance level which I have mentioned multiple times. While a breakout from this level could lead to the price target of 48p, there is still a chance of a pullback.
According to the latest news, UK’s Frasers Group has further increased its stake in Boohoo plc. This puts the group’s total stake at 17.2% which is equivalent to 218 million shares. At the current stock price, the overall holding holdings are worth 73.5 million pounds.
Despite a strong uptrend in the US stock market, UK shares are struggling to catch up. The shares of Boohoo plc are still 35% down from their yearly peak. However, the stock has shows a significant recovery in December 2023 and is up 26.12%.
At time of writing, LON: BOO was trading at 40.37p during the New York Session on Tuesday. The stock also hit 41.37p earlier in the day but the sellers pushed it toward the critical level once again. The next couple of days will be very critical for the shares as the bears try their best to cause another rejection from the key level.
I was one of the few analysts who accurately predicted a bounce in BOO when the stock was forming the bottom. If you read my previous analysis, you know that I also gave the price target of 40p which has been perfectly met.
The following chart shows how the price is struggling to fund strength above 40.20 level. Currently, the stock is trading exactly at this level but volatility may increase in the coming days. As long as the bulls hold the 200 MA at 38.67p, there will always be a possibility for breakout above 40.20p.
The long-term Boohoo share price forecast depends on the probability of this breakout which may occur soon. In such a bullish scenario the first upside target will be 48p, followed by 55.78p.
This post was last modified on Dec 19, 2023, 14:40 GMT 14:40