ASOS reported a loss in the first half, its shares are currently down 19% and approaching the key support at 457p.

ASOS PLC reported a loss in the first half but claimed it is still on track to meet its goals for the entire year. In comparison to a profit of £14.8 million during the same time the previous year, the online fashion store saw an adjusted loss before tax of £87.4 million in the six months ending on February 28, 2023. Due to the difficult economic environment and capital allocation towards profitability, revenues decreased to £1.8 billion from £2.0 billion, and net debt increased to £431.7 million from £62.6 million.

Looking at its stock price, shares are currently down 19% trading at around 520p a share. We can see that the price is now approaching the key support level of 457p, which rests along the red trendline. A break and close below the trendline could see the price slide much further, even as low as 350p a share in the mid-long term. At the moment there are no signs of any upside but if consolidation occurs, then resistance now sits at 653p, which is located along the descending trendline. Only a break above the descending trendline could see further upside, with the target then in the range of 700-800p. Technical indicators are now suggesting bearish movement, with the MACD turning negative on the weekly timeframe and the RSI reading 37.