My Last Boohoo Share Price Forecast was Spot-On. What Next?

Boohoo share price has made a slow recovery in the past few weeks as investors buy the company’s growth. The stock rose to a high of 49.53p, which was the highest level since September 2. It has jumped by more than 54% from the lowest level this year, giving it a market cap of over 586 million pounds.

Boohoo makes a comeback

Boohoo is a leading British UK company that focuses on the fast fashion sector. The company creates and sells its products in the UK, US, and other European countries. It has been in a challenging place in the past few years for several reasons. Competition in the industry has risen substantially from companies like Shein. 

Boohoo has also seen its margins shrink as inflation in the UK and other countries spikes. Further, its growth has slowed, pushing the company to downgrade its guidance several times. Further, the company’s profitability has stalled while the number of returns has increased. It is also experiencing long delivery times.

Recently, however, Boohoo share price has made a slow comeback as investors buy the dip. The belief is that Boohoo is a profitable company that has gone through a major stress test through the recent sell-off. At the same time, there are signs that shipping costs have started to normalize while cotton prices have started to retreat.

Analysts remain pessimistic about Boohoo. For example, last month, analysts at Deutsche Bank downgraded their Boohoo share price forecast from 140p to 36p. Those at Barclays, JP Morgan, and Jefferies have recently downgraded their forecast for the stock.

Still, my last prediction for BOO has turned out to be accurate. Last month, I predicted that the stock would continue rising in the near term. I noted that it was a good buy but for brave investors. Since then, the stock has risen by more than 30%.

Boohoo share price forecast

The four-hour chart shows that the BOO stock price has been in a strong bullish trend in the past few weeks. It has managed to move above the 25-day and 50-day moving averages. It has moved above the ascending trendline shown in green. 

The MACD has moved above the neutral level and formed an inverted head and shoulders pattern. In price action analysis, this pattern is usually a bullish sign. Therefore, there is a likelihood that the stock will continue rising as bulls target the next key resistance level at 60p. A drop below the support at 43p will invalidate the bullish view.

Boohoo share price