Will ASOS continue falling, or will it rise again back to 4239p Friday highs?

• ASOS shares have fallen over 37% today to trade 2631p (at time of writing)
• ASOS cut its FY sales guidance (+15% vs +20/25% prev.) after significant deterioration in November trading.
• ASOS dragging the rest of UK Index Retail sector down with it.
• Shares -66.1% from 2018 highs; now trading at 2018 lows; -60% year-to-date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading ASOS – An Example

Let’s say you feel that the stock is a bargain and you think it could bounce back to recent highs of 4237p. You decide to buy exposure to £10,000 worth of ASOS using a CFD, at the current price of 2631p. To do this, you need £2,000.

Let’s assume ASOS recovers back to 4239p Friday highs (+61%). Your profit would be £6100, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. ASOS falls 9% and hits your stop-loss. Your loss would be £900.

This is provided for information purposes only. It should not be taken as a recommendation.