Will ASOS continue falling, or will it recover to 3205p recent highs?

• ASOS shares -9% today after results.
• Online fashion retailer’s Q2 sales missed estimates.
• Shares already bounced +5% from their worst today.
• Now trades 2921p (at time of writing).
• Shares -12.2% from 2019 highs; +35.6% from 2019 lows; +31.3% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading ASOS – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 3205p recent highs. You decide to buy exposure to £10,000 worth of ASOS using a CFD, at the current price of 2921p. To do this, you need £2,000.

Let’s assume ASOS recovers back to 3205p this week’s highs (+9.7%). Your profit would be £970, 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.