Are boohoo shares finally about to turn higher?
It's been a nightmare period for this online fashion retailer, but independent analyst Alistair Strang might have some good news at last.
11th October 2023 07:41
by Alistair Strang from Trends and Targets
As we approach Halloween, it obviously makes sense to review a scary share with the moniker BOO.
Boohoo Group (LSE:BOO)'s share price has been experiencing a rather frightening time since the end of 2021, but is finally starting to show early symptoms of exiting the misery.
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We’re hopefully not reaching too hard, but from our perspective the price currently need only exceed 32.3p (currently 30.8p) to give the first signal some recovery may be upon it.
We are hinging this on what happens should just 31.08p be exceeded, so there’s not a lot of work required.
Above 31.08 calculates with the potential of a lift to 33p, once again returning above an uptrend which dates back to 2015. Normally, this would be quite a big deal, taking the share out of its immediate Blue downtrend.
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Should 33p be exceeded, things get interesting as a future 40p works out as a sane ambition. Visually this could signify the start of a proper share price recovery cycle but, to be safe, we shall prefer review the numbers if the 40p ambition makes itself known.
Source: Trends and Targets. Past performance is not a guide to future performance.
Our converse scenario remains scary as below 28p threatens a visit to 24p. If broken, our eventual ultimate bottom works out at just 7p.
For the present, we suspect Boohoo are about to experience some positive movement. Hopefully they don’t have any scary news to release, in keeping with the season.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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