On Friday, Boohoo’s share price dropped by 5 per cent. The bear move was a continuation of a strong downward move that has seen Boohoo value dropping by 39 per cent since August 12.
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Not in Sell Zone
Today, the Boohoo share price is trading at its lowest price level since 2016. In August alone, the company has dropped by more than 35 per cent. However, the aggressive bearish trend has not started this month. The company’s year-to-date data shows that Boohoo has lost 63 per cent of its value. The trend also looks to be becoming aggressive, and therefore, there is a high likelihood that we may see further drop throughout the year.
The company has suffered for a number of reasons, including the latest inflation, which has seen most of its customers cutting down on their expenses to meet their day-to-day needs. The latest profit warnings have also not helped the company to get out of its current situation. With profits projected to decline, and sales growth in 2022 in doubt, investors have to reconsider their investments in the company.
However, despite its recent predicaments, reports show the company has continued to invest in other companies, with Revolution Beauty Group being the latest. Reports show Boohoo has increased its shares from 3 per cent of the company to over 7 per cent.
Boohoo Share Price Analysis
Unfortunately, the latest price drop looks poised to continue for the next few trading sessions. My Boohoo share price prediction expects the prices to drop as far down as below the 35p price level.
There is a high likelihood that we may see Boohoo continuing to set new price lows. My analysis does not rule out the possibility of the share price hitting the $30p price level. My will only be invalidated by prices trading above the 50p price level.