Further near-term upside in sight

1 mins. to read Further near-term upside in sight

While 2016 was full of black swans, surprises, shocks and an overload of celebrity deaths, the rise and rise of the online retailer was at least one predictable concept that was in line with expectations. Boohoo (LON:BOO) was among the vanguard.

One of the big hurdles to being a successful investor is the issue of bagging the big profit. It should be common sense: you scale into a holding, and you scale out. But for some reason people do not find it so easy.

Looking at the daily chart of, it can be seen how the stock has been in a sharp recovery mode since as long ago as September last year, with the gap through the 200 day moving average. The position now is that we have been in a likely mid-move consolidation since the beginning of October, in a wide sweep between 100p and 130p.

The hope for the longs now is that as little as an end of day close above the initial December 130.75p peak would be enough to take the shares to the top of a rising trend channel in place since the end of September. The timeframe on such a move would be one month after the technical trigger.

All of this may seem like stretching things too far. But the latest news regarding upping guidance and the acquisition of PrettyLittleThing should be enough to keep the fundamental momentum going here at least a little while longer.


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