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 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 event. Despite price holding above this strong level of support, it is facing selling pressure from a declining from its October highs.
ASC is currently supported by the lower , it is above the 4334p zone and if it can break the , may see some more upside. A retest of the all time highs would see a 20% move.