At time of writing, the Kogan.com Ltd [ASX:KGN] share price is up over 4% to $8.72. As you can see on the chart below, the online retailer has recovered strongly after the initial drop experienced from the impact of COVID-19.
What’s been happening with Kogan
Kogan announced on 15 May that it had acquired Matt Blatt, one of Australia’s premier furniture and homewares retailers and a pioneer of the online furniture industry in Australia.
The company’s CEO Ruslan Kogan said:
‘We are pleased to bring the iconic Matt Blatt brand into new ownership, and relaunch the business as an online-only offering. Our acquisition of Matt Blatt gives us a springboard from which to expand our reach in the furniture and homewares market.’
Along with the purchase of Matt Blatt Furniture, Kogan released their performance results on 20 April. In line with a lot of people being at home due to COVID-19, gross sales for March 2020 grew by 69% above February 2020.
Kogan paints an interesting picture as it has bucked the trend of a lot of the market. A lot of people are buying online currently for both personal needs and tech products for those working from home.
The company has fingers in many pies, and its diversified product offering appears to be working based on the latest sales figures.
Looking into the technical side of things, Kogan experienced a fall of 57.3% from the high in January 2020 to March 2020. Finding support at $3.45, the price bounced up from here 141.73%. Clawing back any losses in price and moving ahead to create a new high.
The current run up in price appears to be finding resistance around the $9.00 level. If the Kogan share price can break through this, the natural level of $10.00 may come into focus. Being the previous all-time high, this is something to keep an eye on.
Should the price start to fall away, then levels of $8.07 and $7.14 may become relevant.
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