The Boohoo share price has been on a 9-day consecutive bull run. Today, the prices are up by 2 per cent. The trend is also looking highly likely to continue throughout the session, which means we might see a further push to the upside.
The British retail store, which is one of the largest online fashion retail stores aimed at 16-30-year-olds, has seen its growth continue to rise amidst changes in its operations. The company introduced charges for returning goods purchased through their site two weeks ago. The Boohoo reversal of its policy followed similar moves from its competitors, such as Zara, which also had charges for returns. The decision was taken to reduce the company’s profit hit from customers sending back their unwanted items. According to reports, shoppers would now be required to pay £1.99 to return goods bought from Boohoo and BoohooMan.
The decision to implement the changes also looked to have had support from investors. Before the decision was taken, the Boohoo share price had struggled to establish a solid trend, trading within the 52p support level and the 66p resistance level. However, since the decision was announced, the share price has been going up and has already broken above the resistance level.
Boohoo Share Price Prediction
Looking at the chart below, we can see the Boohoo share price had traded sideways for days before the announcement of the extra return fee. However, the prices started going up two weeks ago, and since then, we have had a 9-day consecutive bullish run that has resulted in a 28 per cent rise in Boohoo value.
Using the current price action, there is a high likelihood that we will continue to see prices rise. Having broken out of the 66p resistance level and currently trading at 69p, there is a high likelihood that the next price level will be the 75p psychological level. At that point, it will be clear that the long-term bearish trend that has lasted for months is over, and the prices are headed to trade above the 100p price level.
My analysis, however, will be invalidated should the prices trade below the 66p demand level in the next few trading sessions. At that level, it will mean that despite showing strong signs of reversal, there is still a likelihood of further share price drop.
Boohoo Daily Chart
