Boohoo Share Price Forecast: Further Retracement Is Likely

The Boohoo share price has had a relatively strong month in August. The BOO stock jumped by about 7.64% since August and 11.09% from its lowest point this year in July. However, the stock is almost 28% below its highest level this year. Its total market capitalization currently stands at £3.39 billion.

Boohoo Developments

Boohoo is a fast-growing online fashion retailer that targets 16-30-year-olds. The company makes most of its money from women, however lately, men’s brands have shown strong growth. The business was started in 2006. It specializes in its brand fashion clothing, with over 36,000 products.

The Boohoo share price has been under pressure amid rising competition from fast-growing companies like Shein. Shein is a Chinese online retail company. The company was recently named as the largest online-only retailer in the world. In June, the app overtook Amazon as the most downloaded shopping app in the US.

Boohoo has recently attracted the attention of major companies. US investment company, T. Rowe Price recently took a 10% stake in Boohoo Group, making it one of its biggest shareholders.

The company has been indicating that business is still booming. In August, the company announced its plans to invest £500 million in the UK over the next five years. It also employed 5,000 more people and stated that it would be investing in warehouse space and technology.

Boohoo will be in the spotlight in September ahead of its interim results scheduled for release on September 30.

Boohoo Share Price Forecast

The daily chart shows that the Boohoo share price is still under pressure despite staging a recovery in the past few weeks. At the time of writing, it was up 1.11% at 273.7p.

The price is below the 25 and 50-day exponential moving averages. It is also below the 50-day exponential moving average.

Therefore, the stock is likely to pull back in September as bears eye the key support at 250p. On the flip side, a move past the key resistance at 300p will invalidate this view.

Daily Price Chart