Boohoo share price is down again this Thursday after investors continued to dump the stock as a fallout from the revelation that the head of Boohoo’s MissPap broke coronavirus lockdown rules with a dinner party at her home.
This is yet another scandal that has plagued the company in recent times. Boohoo continues to find itself struggling to shake off the scandal that emerged when a Sunday Times investigation in early July found that factory workers in Boohoo’s supply chain were underpaid by as much as 54% below the minimum wage.
The lockdown had sparked interest in Boohoo’s high street apparel wear, leading to a demand that caused investors to flock into the stock. Lifting of lockdowns coincided with the worker exploitation scandal, setting off a perfect time bomb that caused the Boohoo share price to plummet nearly 50% at a point.
The active daily candle is now threatening the support provided by the lower boundary of the ascending channel. If this boundary gives way, we could see 283.2 become the new support for plunging prices. If the decline continues, 262.7 becomes the new target, along with 242.3.
Conversely, a bounce off the channel’s lower edge allows the Boohoo share price to target the 312.2 resistance. The 16 September and 1 December highs at 325.2 serve as an additional target to the north.
