More upside after STRONG support and a 420% move for ASOS?

In December 2018, the share price of ASOS fell 38% in a single day after the company announced an unexpected profit warning after a poor November of trading - it was amongst a number of British retailers to be hit by weak consumer confidence and increased discounting. Shares tumbled to 2307p , the lowest since January 2015. The price recovered 5 months later in April 2019 only to continue to fall to new lows by a further 75% as a result of CV19, despite previous positive earning.

ASOS has benefitted from a shift in online shopping trends of young people with demand for activewear and loungewear soaring. Its own brand line of comfort casualwear, Collusion, was searched for more than 7.1 million times during lockdown, and they sold over 1.5 million T-shirts and 760,000 pairs of tracksuits.

It is worth noting that ASOS founder and director Nick Robertson has offloaded £13.6 million worth of shares after revealing it had more than quadrupled its pre-tax profits. For the year ended 31 August, profit before tax was up 329%.

Since its low on the 3rd of April, and after again announcing a big earnings beat, its share price has rocketed over 420% where the price found resistance in early October. Price retraced to the 0.618 Fibonacci level and has since found major support at the 4334p zone, creating a parallel trading channel. The 4334p zone has been tested at least 10 times since the 9th November Fibonacci retracement event. Despite price holding above this strong level of support, it is facing selling pressure from a declining trend line from its October highs.

ASC is currently supported by the lower bullish price channel , it is above the 4334p zone and if it can break the trend line , may see some more upside. A retest of the all time highs would see a 20% move.
Comment: Yesterday saw a large green candle close through the descending trend line, so todays candle close may be indicative of the short time price movement for ASOS. Ideally, a retest of the trendline and a candle close above the trend line would be good bullish price action in the short term.
Trade closed: target reached: Closed trade out here for 15% profit, just a few % underneath the TP.