ASOS #Brent #Nasdaq Like most folk with interest in the markets, we glance at Google News to catch any important business headlines. The screenshot below, highlighting a BBC news story panicked us, due to ASOS being “one we cover” and a share we’d been expecting to rise!
A quick glance at what was really happening revealed ASOS had grown by 14%, a motion quite at odds with the headline news. It did make us wonder how many folk bailed positions or dumped shares, thanks to a media intent on the dramatic, when indulging a quick review of a 7am RNS from ASOS. To be blunt, we suspect the BBC did absolutely zero journalism, instead doubtless relying on a press release via a 3rd party (a brokerage?) to give a sense of looming disaster. Even a glance at the RNS wording would have given the media some pause for thought.
Folks who dumped shares were doubtless feeling mildly irritated by 10am as the share price peaked for the day.
Unfortunately, the story gets worse – or better. The immediate situation is mildly encouraging, the price of ASOS now having closed above the glass ceiling which formed following their “profit warning” in December. Generally, this is a good thing, moving the share price into a scenario where we can calculate moves now above 3673 should bring further growth to a modest 3826p. If exceeded, our secondary for the longer term comes in at 4338p, rather neatly covering the circled gap and suggesting the drop was doubtless overcooked. Despite being able to calculate a rosy future beyond 4338p, we shall need stir the tea leaves again should such a number appear in the future.
Of course, this is the stock market and always capable of a good giggle at the investors expense. In the case of ASOS, the share price presently requires to slink below 2790p to signal incoming danger with reversal to 2100p initially probable.