ASOS, a discount price?

#Gold #Nasdaq

When a company issues three profit warnings within a single year, there’s generally a reasonable expectation something is going horribly wrong. ASOS have opted to join this exclusive club, their share price retreating from 60 quid down to a current £8.70. The picture is not pretty, unable to be photo-shopped unlike the images on their website.

Various stories have emerged regarding online buyer habits which companies similar to ASOS need deal with. ASOS do not charge for returns, so there’s little impediment to stop buyers ordering £1,000 of clothing, intending to only keep £100 of it. The may order multiple sizes of an identical product, intending to keep the one which fits. It even makes a degree of sense but perhaps isn’t the ideal business model for an online retailer.

Another classic wheeze is something called “wardrobing”, ordering an outfit intended to be worn for a Zoom video call, then returned. Personally, I wish there was a facility where I could order a slimmer, fitter, version of myself for video calls! It’s certainly not looking like a fun time to be in the online clothing industry.

 

ASOS, with a share price trading at levels not seen since 2010, are looking as attractive as a Government advert for a Covid-19 initiative. Visually, we’re far from the convinced the share price has yet exhibited a viable entry level, instead suspecting it has some more relaxation ahead. The recent market movement which gapped the price below Red on the chart was especially significant, the market sending a clear signal the uptrend since 2010 no longer applies.

Now, it appears below 775p calculates with the potential of reversal to 592p as a fairly major point of interest. We’ve a strong reason to hope for a bounce around such a level as our longer term secondary, if the initial breaks, works out at an ‘Ultimate Bottom’ of just 90p, a level below which we cannot calculate.

If ASOS intends escape the current nightmare situation, the share price requires to recover above Red, presently 1,150p to tick the first box for a return to sanity. To summarise, we’re not inclined to view ASOS share price as “cheap”, quite the opposite.

 

FUTURES

Time Issued Market Price At Issue Short Entry Fast Exit Slow Exit Stop Long Entry Fast Exit Slow Exit Stop Prior
9:39:13PM BRENT 112.24 ‘cess
9:42:11PM GOLD 1839.12 1833 1829 1824 1842 1846 1851 1867 1836
9:48:48PM FTSE 7114.91
9:50:37PM FRANCE 5916
9:53:56PM GERMANY 13270 ‘cess
9:55:37PM US500 3713
9:57:18PM DOW 30153
9:59:26PM NASDAQ 11390 11238 11197 11128 11363 11407 11457 11599 11288
10:01:49PM JAPAN 25974

 

20/06/2022 FTSE Closed at 7121 points. Change of 1.5%. Total value traded through LSE was: £ 6,049,529,686 a change of -50.99%
17/06/2022 FTSE Closed at 7016 points. Change of -0.4%. Total value traded through LSE was: £ 12,344,389,846 a change of 36.38%
16/06/2022 FTSE Closed at 7044 points. Change of -3.15%. Total value traded through LSE was: £ 9,051,276,874 a change of 32.71%
15/06/2022 FTSE Closed at 7273 points. Change of 1.2%. Total value traded through LSE was: £ 6,820,318,073 a change of -14.4%
14/06/2022 FTSE Closed at 7187 points. Change of -0.25%. Total value traded through LSE was: £ 7,967,426,420 a change of 8.5%
13/06/2022 FTSE Closed at 7205 points. Change of -1.53%. Total value traded through LSE was: £ 7,343,380,444 a change of 22%
10/06/2022 FTSE Closed at 7317 points. Change of -2.13%. Total value traded through LSE was: £ 6,019,204,674 a change of -10.01%

SUCCESS above means both FAST & SLOW targets were met. ‘CESS means just the FAST target met and probably the next time it is exceeded, movement to the SLOW target shall commence.

Our commentary is in two sections. Immediately below are today’s updated comments. If our commentary remains valid, the share can be found in the bottom section which has a RED heading. Hopefully, this will mean you no longer need to flip back through previous reports. HYPERLINKS DISABLED IN THIS VERSION

Please remember, all prices are mid-price (halfway between the Buy and Sell). When we refer to a price CLOSING above a specific level, we are viewing the point where we can regard a trend as changing. Otherwise, we are simply speculating on near term trading targets. Our website is www.trendsandtargets.com.

UPDATE. We often give an initial and a secondary price. If the initial is exceeded, we still expect it to fall back but the next time the initial is bettered, the price should continue to the secondary. The converse it true with price drops.

We can be contacted at info@trendsandtargets.com. Spam filters set to maximum so only legit emails get through…

Section One – Outlook Updated Today. Click here for Section Two – Outlook Remains Valid shares

Click Epic to jump to share: LSE:BDEV Barrett Devs** **LSE:CBX Cellular Goods** **LSE:DDDD 4D Pharma** **LSE:HUR Hurrican Energy** **LSE:OXIG Oxford Instruments** **LSE:RR. Rolls Royce** **LSE:TW. Taylor Wimpey** **LSE:ZOO Zoo Digital** **

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Updated charts published on : Barrett Devs, Cellular Goods, 4D Pharma, Hurrican Energy, Oxford Instruments, Rolls Royce, Taylor Wimpey, Zoo Digital,

LSE:BDEV Barrett Devs Close Mid-Price: 454.4 Percentage Change: -3.71% Day High: 476 Day Low: 446.9

Target met. In the event Barrett Devs experiences weakness below 446.9 it ……..

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LSE:CBX Cellular Goods. Close Mid-Price: 1.4 Percentage Change: + 0.00% Day High: 1.4 Day Low: 1.33

If Cellular Goods experiences continued weakness below 1.33, it will inva ……..

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LSE:DDDD 4D Pharma. Close Mid-Price: 24.45 Percentage Change: + 4.94% Day High: 25 Day Low: 22.1

If 4D Pharma experiences continued weakness below 22.1, it will invariabl ……..

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LSE:HUR Hurrican Energy Close Mid-Price: 5.75 Percentage Change: -8.73% Day High: 6.64 Day Low: 5.8

Target met. If Hurrican Energy experiences continued weakness below 5.8, ……..

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LSE:OXIG Oxford Instruments. Close Mid-Price: 1958 Percentage Change: + 0.93% Day High: 2025 Day Low: 1920

Weakness on Oxford Instruments below 1920 will invariably lead to 1825 wi ……..

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LSE:RR. Rolls Royce. Close Mid-Price: 91.5 Percentage Change: + 4.32% Day High: 91.8 Day Low: 87.4

All Rolls Royce needs are mid-price trades ABOVE 91.8 to improve accelera ……..

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LSE:TW. Taylor Wimpey Close Mid-Price: 116.95 Percentage Change: -3.23% Day High: 121.5 Day Low: 116.3

In the event Taylor Wimpey experiences weakness below 116.3 it calculates ……..

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LSE:ZOO Zoo Digital Close Mid-Price: 101.5 Percentage Change: -0.98% Day High: 102.5 Day Low: 101.5

If Zoo Digital experiences continued weakness below 101.5, it will invari ……..

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*** End of “Updated Today” comments on shares.

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