Boohoo (LON: BOO) share price has remained under pressure in the past two years. The stock was trading at 31.88p on Tuesday, near its lowest level on record. It has dropped by more than 47% from its highest level this year and by over 90% from its pandemic high of 432p.

Boohoo is a leading company in the e-commerce industry. The company manufactures and sells clothes and accessories through its website and mobile apps. According to SimilarWeb, it is one of the most visited websites in the UK.

Boohoo share price pulled back again on Tuesday after Asos published weak financial results. In its report, the company said that its group revenue dropped by 12% in the 53 weeks to September 3rd. Its UK sales dropped by 13% while its EU and US sales retreated by 4% and 19%.

The company cited numerous factors for the weak performance. For example, it cited the challenging weather in its key markets. While the hot weather in June drove stronger sales in June, wet weather in July and August had a negative impact. It also cited the phasing out of its inventories and higher costs.

Therefore, Boohoo stock price recoiled because investors anticipated weaker results from the company as well. Historically, the two firms tend to perform the same way. For example, Asos stock price has also plunged by more than 50% this year.

The next key catalyst for the BOO share price will be the company’s interim results scheduled for October 3rd. These results will provide more information about the company’s turnaround strategy and whether it is working. 

The daily chart shows that the BOO stock price has been in a strong bearish trend in the past few months. It has crashed from a high of 432p to 31.80p. This price is important because it was the lowest point this year. It is also close to the lowest point in 2022. 

The stock has moved below the 50-day and 100-day moving averages. It has formed an inverted cup and handle pattern. Therefore, the outlook for the stock is neutral since it is at a key support level. A move below this support at 31.79p will point to more downside to 30p.

The alternative scenario is where the stock bounces back and retests the neckline of the double-bottom at 41p. If this happens, the stock will rise by 30%.

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