Boohoo (LON: BOO) share price has finally broken out after trading sideways for weeks. I predicted this move in my previous analysis of the online fashion retailer. The latest technical analysis reveals that a reclaim of a key level could send the stock even higher.
On Thursday, the FTSE 100 index turned green once again. The benchmark index stood at 7,700 after gaining 23 points till press time. The positive sentiment also got reflected in the Boohoo shares which had one of their biggest surge of the year. At press time, the stock was up 7% while changing hands at 39.25p.
There are multiple fundamental and technical reason behind the recent surge ni Boohoo stock price. The decrease in UK inflation in the past few months is acting as a tailwind for the shares of the UK retailers. There has also been an improvement in the liquidity conditions of the market.
Boohoo share price is now trading at its highest level since June 7. There seems to be more upside for the shares if they gain strength above 37.5p level. Today’s 7% surge comes after a 4.5% rise during its previous trading session. The upcoming BOE meeting will be very crucial for the future price action.
I repeatedly mentioned in my previous forecasts that LON: BOO was giving some good bottom signals. The bullish divergence on the RSI was pointing toward a strong bounce. Due to this reason I’m not surprised at all with the latest move. It was pretty much written on the chart.
Boohoo share price will flip bullish once again if it turns the 37.5p level into support once again. In this case, bulls may target the 200-day moving average which currently lies above 43.6p. On the other hand, a breakdown below 37.5p may tnak the price again to retest its June lows.
In the meantime, I’ll keep sharing updated Boohoo forecast and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Jul 27, 2023, 11:07 BST 11:07