Here's why Boohoo shares promise good times ahead

by from Trends and Targets |

Up over 200% since becoming a listed company four year ago, chartist Alistair Strang issues a new forecast for this online retailer. (LSE:BOO) 

It was to take extraordinary effort not to review Boohoo this at Halloween! However, the price has not been making scary movements, perhaps quite the contrary despite some near-term reversal risks.

Last time we reviewed this, the price was expected to reach 242p as an initial upward target. The price not only achieved this at the start of October, it also closed slightly above. In doing so, the downtrend since 2017 was also rather neatly confirmed.

At present, the share is lurking with weakness now below 202p suggesting some relaxation toward 176p. While this does represent quite a severe reversal, it allows the price to remain within the uptrend since 2016 and in doing so, permits a future upward cycle next time the price betters 246p.

Any bounce exceeding 246p suggests some growth coming to 260p next, a probably short lived stutter, then future growth to 291p. While we are taking considerable hope our prior 242p target was exceeded, rather often it is the case of such a movement promising good times ahead.

Below 176p would, however, be quite bad!

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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