ASOS

Thursday, 12th July 2018 10:02 - by Rajan Dhall

The online retailer is one of the reasons for the high st. falling off a cliff. Despite that in recent times price action has been somewhat choppy, especially since the stock reached all-time highs of 7768p. This morning the company have released their latest trading statement and things are looking good for the online clothing retailer. Retail sales grew +22% on a reported basis and +21% in constant currency, market share grew in the UK with retail sales growth of +23%. Moving forward the company also updated their guidance and FY18 Sales within the +25-30% range, likely towards the lower end, this was the same in the interim statement in April.

Looking at the chart and there has been a small recovery in the price following the recent downturn. We have now made a lower high with the last wave stopping at the psychological 6000p area and now we wait to see if the share price can attack 6886p to continue the longer term weekly chart uptrend. We are currently above the value area which is around the 5826 support level, this is the area at price where most shares have been traded. Despite the positive nature of the trading statement, I think the market are looking for something more from the guidance. We could see a small drop but once again the fundamentals of the market remain strong.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.