A trading opportunity for you?
Will ASOS continue falling, or will it recover to 4068p recent highs?
- ASOS shares 40% since April highs.
- Shares already bounced +1% from weekly lows.
- Now trades 2449p (at time of writing).
- Shares -40% from 2019 highs; +6% from 2019 lows; +6% year-to-date.
- Can the stock recover to recent highs?
- Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal
Trading ASOS – An Example
Let’s say you feel that the stock is a bargain and you think could bounce back towards 4068p recent highs. You decide to buy exposure to £10,000 worth of ASOS using a CFD, at the current price of 2449p. To do this, you need £2,000.
Let’s assume ASOS recovers back to 2698p this week’s highs (+8.5%). Your profit would be £850, 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. ASOS 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.