Will Boohoo continue falling, or will it rise again back to 185.6p Friday highs?

• Boohoo shares have fallen to as low as 146p (-20%) today after fellow online retailer ASOS cut its sales guidance.
• Boohoo issued an emergency trading statement, saying trading has been in-line with expectations.
• Shares already bounced +13% from their worst levels to trade 165.6p (at time of writing).
• Shares -33.2% from 2018 highs; +13% from 2018 lows; -12.35% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Boohoo – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 185.6p. You decide to buy exposure to £10,000 worth of Boohoo using a CFD, at the current price of 165.6p. To do this, you need £2,000.

Let’s assume Boohoo recovers back to 185.6p Friday highs (+12%). Your profit would be £1200, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Boohoo falls 4% and hits your stop-loss. Your loss would be £400.

This is provided for information purposes only. It should not be taken as a recommendation.