Will ASOS turn, or will it continue to rise to mid-December high of 4237p?

• The chart shows the ASOS price action since mid-Decemberasc.
• Shares in a 2-week uptrend from 2125p lows; now at 3115p.
• Shares -59.9% from 2018 highs; +46.5% from 2018 lows; +36.7% year-to-date.
• 3 Jan: Asos shares trending higher after an upbeat Christmas trading update from retailer Next’s and positive comments from brokerage Peel Hunt.
• 3 Jan: Peel Hunt reinstated a buy recommendation and say early indications suggest Asos trading levels have picked up into December’s clearance activity.
• In the past 2 weeks, the shares have risen over 47%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading ASOS – An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of ASOS using a CFD, at the current price of 3115p. To do this, you need £2,000.

Let’s assume ASOS trend continues to mid-December high of 4237p (+36%). Your profit would be £3600, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. ASOS falls 2% and hits your stop-loss. Your loss would be £200.

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