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Boohoo Share Price Eyes Breakout After Sideways Consolidation

Boohoo (LON: BOO) share price has been trading sideways for the last one month. The shares of the British online fashion retailer are currently hovering in a major demand zone which may end in a relief rally very soon. There are multiple fundamental and technical factors contributing to this downtrend.

On Monday, the benchmark FTSE 100 index fell by 53 points as the UK stock slid. Boohoo shares also plummeted 1.67% and were changing hands at 33.69p at the time of writing. The prolonged sideways price action suggests a big move is on the cards.

Boohoo PLC Requisitions RBG General Meeting

According to the latest Boohoo news, the online fashion retailer has requisitioned a general meeting for Revolution Beauty Group. The beauty company is proceeding with the plan, and the meeting is expected in July or August of this year. Boohoo plc has raised concerns over the recent shares award to the leadership of Revolution Beauty Group and wants its own members in the board.

The weakness in FTSE 100 index shows that investors in the UK are still concerned about the rising inflation in the country. The constant rate hikes by the Bank of England have also been inadequate to tame inflation. Consequently, the UK is the only country among the G7 economies where inflation is still rising.

Boohoo Share Price May Retest 37p Soon

As mentioned in my last analysis, LON: BOO is currently retesting critical support on its chart. There is a strong likelihood of a relief rally from the 30p-34p region in the coming days. Such a bounce can take the price to retest the 37p resistance, which is a previous support on the chart.

Boohoo share price forecast will become very bearish if the 30p-34p support fails to hold. This will be a very ugly scenario as the next major support lies at 21p, and this level was previously tagged 8 years ago.

In the meantime, you are also welcome to follow me on Twitter to keep track of my personal trades and the latest analysis on Boohoo shares.

Boohoo share price chart
LON: BOO Daily Chart