Member Info for usually_right

200dma at 300p support 287. a break of 300 will see a squeeze higher. but under 287 and sp will fall strongly.

when sentiment is poor any bad news is amplified. more relevant are margins after this. its the margins that allowed boohoo to trade at such a premium to mkt

200 day moving average is c. 300p. if it is rejected, you will find sp moves back down to a sup level lower down, maybe 287, 283 272 and so on. the company is not yet in the clear with uncertainties towards effect on margins, hence its unlikely to see a move back to highs in the space of a couple of days.

no of course not, young millenials are dumb as rocks as they say, they say one thing on facebook but do another. the issue here is what effect changes will have on margins. 40% of cost base is in the uk and if this rises, margins fall. i suspect they can offset some of this will ticket price rises, but not all. so shares at high and an even higher forward pe than before is unlikely.

im not talking about cfd or other margin selling which tends to be a small part of the market. when shorting a company at x you can only see the value drop to zero. shares are borrowed and then sold. the position is then covered at some point. but x can travel higher, its gains are essentially unlimited, so losses are too.

it won't reach highs and will have a hard time in 287-320 range given that margin compression can be expected as they tackle this issue. only doing nothing will keep margins where they are. but they can't afford to do nothing.

it doesnt work like that. they will wait for the government report or the conclusion of the internal repprt at the very least and that's in september.

shorters follow momentum and then get out quick as shorts can only make 100% yet have unlimited losses if left unchecked. they may return by 300p.

283 old fib res, 287 new fib res. sup by 252/248. if below that then fills gap to mid 220's

its esg funds that can't hold the shares given the allegations. in such funds theres pressure from shareholders to avoid those with questionable records, in fact its a remit. but they won't sell down ticks. only on strength. other funds can afford to wait it out as the company probably will do what is required to sort out the issue, but the question becomes what of margins?

its possible, as is anything. but not easily. to breach the 200dma is a sign that everything is as it should be, which it isn't. i don't think it will cross above the 200dma for a while yet, not until there is some signal as to how margins will be affected since that will govern profits. eg a doubling in money spent on costs/wages in the uk would knock about 40% off ebitda

that won't happen so. yes the shares have bounced as there was no more bad news overnight. but the issues they face haven't gone away and funds that need to sell will do so into strength. its one to buy on dips if you believe the story, rather than chase, while things are still relatively uncertain.

some will still be selling out on strength so watch out

283 fib and 300 200dma likely to cap today. if not its 350/360p but that wont happen without some action at boohoo re the slave labour. so likely to cap 282/300 and then lower.

they may sell into this. gap likely to be filled back down. and then a large wick suggests low, if gap filled.

yes singled out but to dispense with accountability the company needs to be seen to be dealing with issue. it will mean erosion of margin on one side as money will be spent paying higher prices for goods made but they will mitigate some of that in sale price increases. some not all. so its a matter of the margins going forward.

last thing that will happen is folks stop buying. they buy not through choice but through must - they cannot afford to shop higher up.
however that wont help the sp right now as its about sentiment. going forward its unclear how far margins will be impacted once they put in place measures to dispense with accountability in regards to the supply chain.

if under 220p will be another soft close. and soft close near lows suggests weakness tomorrow at some stage.

this is generally how most will behave. what folks say and do are two different things especially when it comes to parting with ones money.

there may be some speculation but any interest parties will err on the side of caution as nobody knows how long this will play out. dont forget any premium must be a large one for shareholders to sell up, so its unlikely there will be any real interest here.