Boohoo technicals target 140p by the end of next month

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Boohoo technicals target 140p by the end of next month

The great divide between online and High Street retailers continues, and is something which the revamped BHS is clearly trying to muscle in on. Meanwhile Boohoo.com goes from strength to strength.

Boohoo.com (BOO): July 140p price channel target

It may have been the case that online retailer Boohoo.com was climbing a wall of worry earlier in the year, but it would appear we are currently looking at a lap of honour for the company and the share price. This is said in the wake of the second profits upgrade this year, with the driver apparently the growth in both the plus-size and petite markets – something which its competitors have not yet fully embraced. The result of all of this is a 130% jump in profits on the attendant sales rise. But perhaps the most obvious manifestation of the ongoing rebound in the group’s fortunes is the share price, where we have seen the stock soaring since the beginning of the year, even as some siren voices suggest that this situation has gone from being a great prospect to being on the overheated side.

Clearly, this situation stopped being a value play a while ago, but of course there may still be an opportunity for momentum traders. In particular, we could see a journey towards the top of a rising trend channel which can be drawn from mid July. The top of the channel is heading as high as 140p – a target we are expecting to be hit as soon as the end of next month. Only sustained price action back below the late September resistance at 105.25p even begins to delay the upside scenario.

boohoo-chart


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