Boohoo Shares Targets 37.5p As Bears Lose Control

Summary:

Boohoo share price is inching closer to the 35p resistance after a rebound from the fresh yearly lows. The next target could be 37.5p.

Boohoo share price is down 0.38% in the daily timeframe after UK stocks took a plunge due to mixed economic data released on Friday. This data revealed the UK economy’s inability to expand its output in the third quarter despite a modest improvement in the month-over-month GDP figure.

Boohoo recently landed itself in hot waters after BBC claimed to have evidence of Boohoo manipulating suppliers in order to drive down prices. However, the online fashion retailer defended its treatment of suppliers and claimed no wrongdoing.

Boohoo shares have been on an upward trajectory after breaking free from the downward trendline that the price has been respecting since March 2023. Additionally, the shares have been accumulating in the 30p-34.7p since June.

A technical analysis of the chart shows the most likely scenario is a retest of the 37.7p resistance which was a previous support level. This key resistance level lies about 11.3% above from current level. A further breakout above the 37.6p resistance will put a retest of the 200 MA level on the cards in the coming days.