ASOS shows an uptrend channel since end May 2013 that has been reaffirmed four sessions ago.

The company has a good financial situation. In fact, sales have increased by 39% on last year and are expected to rise by 32% this year, an improvement in net income by 30% over the last year for a net margin of 5.24%. All this, joined to a mastered debts and production costs levels leads to a solid financial structure.
Moreover, the group counts with quite positive revisions on EPS and dividends.

Currently near the 50-day moving average level, the stock has a bullish overall direction since several sessions. This positive path should lead the share price to jump over the GBp 6385 resistance, which represents the buying signal for investors.

Having risen over the GBp 6385, investors could take a long position on ASOS, this in order to reach the target price at GBp 7008. The stop loss is fixed at GBp 6145. It is important to remark that Interim 2014 earnings are going to be released on March 18.