AIM’s biggest and most popular share, online clothes retailer ASOS PLC (LON:ASC), can add just shy of 10% in the coming weeks and months according to technical analyst Zak Mir.
The target for ASOS is £56 per share, he says.
Mir, a closely-followed analyst who’s dubbed ‘King of Charts’, has highlighted that ASOS presents a solid chart and a solid fundamental background too.
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“The chart probably says it all,” Mir says in a TIP TV segment for Proactive Investors.
Mir notes in the podcast the ASOS recovery following the year’s low of £25 in February.
“That was the weakest part of the year. Since then we’ve broken above the 200-day moving average in March,” he says.
“We had the 50-day moving average and 200-day average crossing in April, which is again a positive construction for the technical, and since then a rising trend channel from May is pointing towards a £56 target.”
Mir’s technical analysis-driven target mirrors a recent write up from investment bank UBS, which in late September upgraded its target to £55 from £44.50.
UBS, at that time, said the retailer’s investment case was “evolving into online fast fashion and away from pure brand aggregation, albeit with a degree of edited range and product selection”.