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Boohoo Share Price Tumbles, But There’s A Catch

Boohoo (LON: BOO) share price is having a very volatile day. The stock opened higher on Tuesday and surged to 57.78p before having a major correction. At the time of writing, shares of Boohoo UK are trading at 54.58p after losing 1.52% today. Our analysis reveals that the bears are clawing back in after a massive rally.

Most UK shares showed a positive price action during the first trading session after the Easter holidays. The benchmark FTSE 100 index also gained 15 points today and was up 0.18%. Nevertheless, Boohoo shares failed to join the rally and remained red till press time.

Boohoo Group PLC Appoints New Deputy Chairman

Recently the UK-based online fashion retailer Boohoo Group PLC has appointed Alistair McGeorge as its independent non-executive director. Alistair will succeed Brian Small as a deputy chairman of the group with effect from March 31.

The appointment comes at a time when the firm’s major shareholders are not happy with the company’s top executives rewarding themselves with big bonuses. The company’s CEO, John Lyttle, is expected to bag $50 million once the proposed changes in growth strategy take effect.

Boohoo Share Price Fails To Breakout

The LON: BOO chart reveals a very critical resistance that the shares are attempting to reclaim. This is the 55.78p resistance which has resulted in multiple rejections in the past few months. This was previously a major support which has now turned into a resistance. A reclaim of this level will make Boohoo share price forecast extremely bullish.

A weekly closure below the 55.78p level will mean a failed breakout attempt. In such a scenario, a retest of the 200-day moving average will be on the cards once again. The 200 MA currently lies at 47.95p on the daily chart.

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Boohoo share price chart
LON: BOO Chart