After a technical rebound, the stock is showing signs of weaknesses near to the GBp 2833 resistance.
Regarding a fundamental viewpoint, analysts have recently revised downward the earning per share which is often the results of recent activity weakness. Moreover, the earning per share in 2014 has been published at GBp 44 per share which correspond to a decrease of 9% compared to 2013. This decrease can be explained by margin degradation.
Graphically, the stock went through a period of rebound in recent sessions towards the GBp 2833 medium-term resistance. The share should consolidate near this area. It could act as a stopping point of the upward movement. This scenario suggests a return to the GBp 2260 support area which will be the first bearish objective.
Therefore, the most offensive investors can benefit from the technical configuration to take a short position. The objective will be fixed near to the GBp 2260 support. Only the breakdown of this level would open up new bearish targets toward GBp 2000. The stop loss will be set above GBp 2833.
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ASOS Plc is a United Kingdom-based global fashion retailer. The Companyâs segments include the United Kingdom, Europe, the United States and the Rest of the World. It has approximately 17 own brands, including ASOS Design, ASOS Edition, ASOS 4505, ASOS Luxe, As You, Collusion, Topshop Topman, Miss Selfridge, HIIT, Dark Future, Unrvlld Spply, Crooked Tongues, Day Social and Actual. The Company sells products across the world and has Websites targeting countries that include the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark and Poland. The Companyâs warehouse network includes four fulfillment centers and five returns centers, enabling them to provide next day delivery to the majority of its global customer base. Its Barnsley and Lichfield warehouses service both the United Kingdom and Rest of World territories, with Eurohub servicing Europe and Atlanta servicing North America.