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
Shares of Boohoo Group PLC (LON: BOO) are up 7% since September 14th as the stock’s price action remains muted ahead of the release of its earnings results next week.
The online fast-fashion retailer’s stock has been stuck in a tight range for the past month as buyers take a breather following the massive rally that followed the massive selloff triggered by the Leicester sweatshop labour scandal.
Boohoo commands a strong position within the global fashion industry and has a strong cash position that has allowed it to grow at a fast rate by acquiring weaker rivals who were struggling in the cutthroat world of fast fashion.
The company benefits from large economies of scale and can offer consumers the latest trending fashion pieces at very cheap prices, making its products extremely popular among young fashion-conscious consumers.
The stock’s sideways trading presents a great opportunity for both investors and traders to establish long positions in the company before its earnings results when the price could break higher netting them profits.
However, nothing is guaranteed in the markets and we could easily see the stock fall if the earnings report is mostly negative.
Boohoo share price
Boohoo shares are up 7% since 14 September when they were trading at 298.5p to currently trading at 319.3p.
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