Boohoo (LON: BOO) share price is behaving precisely as I predicted in many of my previous forecasts. The latest analysis reveals that the shares are retesting a key demand zone which may result in a bounce. However, a breakdown will be very catastrophic.
The UK stock market showed a mixed sentiment today, as the FTSE 100 index fell 15 points. Till press time, the benchmark FTSE 100 index was fondling with 7,600 points level. However, Boohoo shares were up 1.92% after a slight rebound on Monday.
As per the latest Boohoo news, the company intends to vote against the reappointment of the CEO of Revolution Beauty, Bob Holt. The shares of Revolution Beauty have been suspended from trading since September 2022. Boohoo plc gets the voting power from its stake in the company.
In other 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.
Technical analysis of the LON: BOO chart shows that the shares have recently broken down from an inverted cup and handle pattern on the daily chart. This is a very bearish pattern, and this breakdown can make Boohoo share price forecast of 14p a reality.
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.
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This post was last modified on Jun 19, 2023, 14:45 BST 14:45