Boohoo: will the stock hit an all-time high?
Its share price has been boring, but it has a chance of greatness.
9th February 2021 08:36
by Alistair Strang from Trends and Targets
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Its share price has been boring, but it has a chance of greatness.
Boohoo
Online retailer Boohoo (LSE:BOO) remains a puzzle, thanks to the share price being pretty boring. News the company bought Wallis, Burton and Perkins failed to really catch the market’s attention, the exercise obviously being an effort to purchase brand names and associated customer loyalty.
Our surprise at the lack of flamboyant price activity comes from other online retailers enjoying some quite strong performances.
We've established 380p as a trigger level for the future, one we feel is worth watching out for.
Movement above 380p looks capable of fairly confidently producing traffic in the direction of 450p. This represents a new all-time high for the share price, and we've a sneaking suspicion some hesitation shall make itself known at such a point.
Only with closure above 450p do things become truly exciting, as our secondary is at 524p. In fact, long term we can even calculate a third ambition up at 585p.
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This lack of flamboyance is nagging a bit, but if we opt to search for trouble spots, the share price has to dip below 275p to hint at things getting nasty. This would allow reversal to commence to an initial 248p with secondary and bottom (hopefully) at 205p, and ideally a rebound.
While the loss of around 2,500 jobs is an obvious problem, further confirmation of future problems for commercial landlords - both for high street and shopping centre locations - continue to make themselves clear. It's likely the online side effect of Covid-19 shall forever herald a change in buying habits.
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.
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