Too cautious in his last report, our chartist sees reason to be optimistic this time round.
Boohoo Group (LSE:BOO)
Sometimes, we review an article and wonder just why did we bother? Our last glance at Boohoo (LSE:BOO), full of logical doom, finished with just 22 words dealing with the upside. Needless to say, the prior 300-word report could be ignored as it successfully triggered and completed an upward cycle.
This time around, we're again a little pessimistic about Boohoo but, from a big picture perspective, also fairly confident. It begs the question; is a buy opportunity about to present itself? The immediate situation suggests weakness below 257p should lead to an initial 237p.
If broken, secondary calculates at 222p and at this point (roughly) life becomes dangerous. There's a very real risk, if the price shuffles below 222p, of travel down to 150p commencing. While it's a heck of a drop, historically there's ample reason to hope for a bounce if such a level makes an appearance.
Our hope is travel to 237p shall be "it" with a rebound to follow from such a level.
The reason for optimism is fairly simple. We'd previously given an upper target of 251p, something the share price has managed to better. As a result, despite expecting the price to reverse to 237p, it's already viewed as being on a track which leads to an initial 294p with secondary 344p. All we're attempting to do is plot the potential path!
One thing we need to warn about. Any movement by the market which gaps the share price down to 237p shall make the concept of growth difficult to promote. This will create one of our terrifying GaGa Gap Up/Down routines, a movement by the market which normally will suggest proper reversal.
For this reason, we've highlighted our bottom number at 150p, this being the calculation if a GaGa does take place.
Source: Trends and Targets Past performance is not a guide to future performance
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, Shareprice, 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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