- Summary:
- Boohoo share price is gaining strength as the demand below 30p has overpowered the supply. A breakout above 33p will be very bullish.
Boohoo share price is outperforming the broader UK market. The shares of the online retailer are still catching a bid despite an intense downtrend in Western equities. This price action is driven by the strong demand zone which I have mentioned in my previous forecasts.
The FTSE 100 index fell to its fresh 2-month lows on Monday. This was an indicator of the prevailing bearish sentiment in the market. The miners led the losses during the first trading day of the week. However, Boohoo shares were up 2% at press time and changed hands at 31.1p.
In one of the major developments last week, the retail, sport and intellectual property group Frasers Group increased its stake in Boohoo plc. As per the recent filing by Frasers Group, the company has raised its stake from 13.4% to 15.1%. The total shares held by the group are valued more than $69 million.
Despite today’s positive price action, Boohoo share price is still down 49% from its yearly peak. This downtrend can be attributed to the weakness in the FTSE 100 index which failed to break above 7,680 points despite multiple attempts. The longterm borrowing costs in the UK have hit their 25-year highs.
Boohoo Share Price Forecast
It is evident from the following BOO chart that the demand below 30p is overpowering the supply. The selling pressure appears to have been absorbed by the passive buyers. This may turn out to be a bullish accumulation if the price gains strength above 33p.
Another bullish sign for the Boohoo share price forecast is the breakout from the downward trendline. Although this breakout is not confirmed yet, today’s daily candle is still looking very bullish. However, the bearish market structure will only be broken if the bulls clear the supply above 39p on a high timeframe.
