Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Boohoo Plc (LON: BOO) shares are still trading down 30.6% from its June high of 434p before the sweatshop labour scandal erupted triggering a massive selloff.
One of the key reasons why Boohoo shares have been stuck trading sideways since mid-August is the lack of positive news from the company.
All the recent headlines about the company have been negative since the scandal including the exit of ethical investors, which we covered in-depth.
The fact that some retailers led by Next, Asos and Zalando dropped Boohoo products from their catalogues has also weighed on the online retailer’s stock price.
Despite all these issues, including the ‘Boycott Boohoo’ movement, the stock still recouped over half of its losses shortly after the scandal broke.
Boohoo share price
We should also mention that Boohoo enjoys a high level of institutional ownership, currently at 39%, and given that they are the ‘smart money’ you can see why the stock is trading at breakeven for the year.
Boohoo has a very strong positioning within the fast-fashion industry and its products are loved by its target market, which is why it has fared much better than many other high street retailers.
The stock cannot stay in a range forever, and will definitely break out explosively in either direction. What we need is a major fundamental catalyst.
The company is set to report its H1 2020 results on 30th September, watch out for the report.
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