Boohoo Share Price Forecast as the Unhinged Meltdown Accelerates

The Boohoo share price is still in trouble. The BOO stock declined by more than 4.4% on Monday and crashed to the lowest level since March 2020. It has dropped by more than 67% from its highest level last year. It is not alone. The Asos share price has also crashed by more than 60% from its highest level this year.

The Boohoo share price has crashed in the past five weeks straight. The sell-off accelerated on Monday as the stock declined by more than 4%. There are several reasons for this decline. First, investors believe that the company’s growth will start slowing down as the number of Omicron cases jump. 

Second, the stock has declined because of the rising cost of doing business. In the past few months, the cost of labour, cotton, transport, and other things has jumped sharply. As such, investors believe that the company will see thinner margins in the coming months.

Third, there are concerns about the rising competition. The biggest concern is Shein, a Chinese company that has become relatively popular among teens. 

Still, from a fundamental view, I believe that the Boohoo share price is getting cheap and that it will likely resume the bullish trend in the coming year.

Boohoo share price forecast

The daily chart shows that the BOO share price has been in a major bearish trend in the past few months. The stock declined below a key support at $177.20, which was the lowest level in October. The shares have also crashed below the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has moved below the oversold level.

Therefore, the stock will likely keep falling in the near term as the bearish momentum continues. If this happens, the next key support to watch will be at $130. On the flip side, a move above the key resistance at $177 will invalidate this view.

Boohoo price