Boohoo.com #CAC40 #Nasdaq Last reviewed in November (link here), we’d proposed a drop to 176, calling it a severe reversal. While not in the retail calamity league of Debenhams etc, there was something distinctly fragrant about what happened when it reached our target level. (Time for a boring chart inset)
As the inset shows, the share price obligingly reversed to our target level, crucially not breaking it for seven entire sessions. As a result, it would have made sense to anticipate a bounce was coming. Unfortunately, on December 17th, the market delivered an early Xmas present to traders by forcing the price down at the open with the circled gap, reaching a painful 146 before the price was bounced. Despite the share recovering to 200p in the period since, we’re now rather nervous as to what the future holds.
If we take the attitude a new trend was formed, the day the price was manipulated downward, there’s now a severe risk of any future break below RED (154p at present) and this allows weakness to an initial 130p. Worse, if broken, bottom looks like proving to be 104p eventually. To be blunt, we’re already concerned at the method being used to move this lots price and suspect 104p intends make its presence felt eventually, ideally as the point at which a proper rebound establishes itself.
Of course, there’s always a chance we’re reading too much into the markets decision to gap the price down from 176p. To convince us we’re reading the tea leaves incorrectly, the share needs trade above 192p at present to enter a cycle to 220p initially. Secondary, if bettered, is at a visually believable longer term 251p.
For now though, our suspicion is this shall end in tears.
|
Time Issued |
Market |
Price At Issue |
Short Entry |
Fast Exit |
Slow Exit |
Stop |
Long Entry |
Fast Exit |
Slow Exit |
Stop |
Prior |
|
10:20:19PM |
BRENT |
65.92 |
|||||||||
|
10:22:32PM |
GOLD |
1285 |
|||||||||
|
10:24:59PM |
FTSE |
7156.38 |
‘cess |
||||||||
|
10:26:58PM |
FRANCE |
5279 |
5266 |
5256.5 |
5237 |
5303 |
5315 |
5324.5 |
5338 |
5276 |
|
|
10:37:13PM |
GERMANY |
11571 |
Shambles |
||||||||
|
10:39:47PM |
US500 |
2770.92 |
Success |
||||||||
|
10:42:02PM |
DOW |
25674 |
‘cess |
||||||||
|
10:44:07PM |
NASDAQ |
7108.62 |
7103 |
7085.5 |
7058 |
7145 |
7168 |
7193 |
7234 |
7113 |
‘cess |
|
10:45:47PM |
JAPAN |
21526 |
6/03/2019 FTSE Closed at 7196 points. Change of 0.18%. Total value traded through LSE was: £ 7,389,181,181 a change of 30.62%