A trading opportunity for you?
Will ASOS break support, or will it rise again to 4000p? (+15%)
- 5 touches off rising support since December.
- Will the pattern repeat itself, rising back to recent levels of 4000p? (+15%)
- 10th April. ASOS H1 pretax profit misses expectations coming in at £4m, expected £5.4m; HY retail sales beat YoY (£1.281bn v £1.131bn). Hurt by poor trade in crucial run-up to Christmas and logistical hiccups. Confident of an improved performance in 2H.
- Shares at 2019 highs; +60% from 2019 lows; -47% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading ASOS – An Example
Let’s say you like the ASOS support, you think it’s heading back up to 4000p. You decide to buy exposure to £10,000 worth of ASOS using a CFD, at the current price of 3450p. To do this, you need £2,000.
Let’s assume ASOS rises back to 4000p (+15%). Your profit would be £1500, from your initial investment of £700.
Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. ASOS falls7% and hits your stop-loss. Your loss would be £700.
This is provided for information purposes only. It should not be taken as a recommendation.