Will ASOS continue falling, or will it recover to yesterday’s highs of 2809? (+20.4%)

• ASOS shares bounced off December 2018 support.
• Now trading 2330p (at time of writing).
• Will it fall further or recover to yesterday’s trading highs of 2809p? (+20.4%)
• Shares -42.98% from 2019 highs; +6.28% from 2019 lows; flat year-to-date.
• Can the stock recover to yesterday’s 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 2809p yesterday’s highs. You decide to buy exposure to £10,000 worth of ASOS using a CFD, at the current price of 2330p. To do this, you need £2,000.

Let’s assume ASOS recovers back to 2809p yesterday’s highs (+20.4%). Your profit would be £2,040, 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.