Will Micro Focus break lower, or will it rise back again to 1444p?

• The Micro Focus trading range has developed since mid-April .
• Shares bounced off 1175p support zone 3 times.
• Now trading close to the support zone at 1211p (at time of writing).
• Will the pattern repeat itself, testing previous highs?
• Shares -54% from 2018 highs; +53.2% from 2018 lows; -52% year-to-date
• IBM acquisition of free software company Red Hat is boosting technology stocks, supporting the bounce from support zone.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Micro Focus – An Example

Let’s say you like the Micro Focus range, you think it’s heading back towards 1444p again. You decide to buy exposure to £10,000 worth of Micro Focus using a CFD, at the current price of 1211p. To do this, you need £2,000.

Let’s assume Micro Focus rises back to 1444p (+19.2%). Your profit would be £1,920, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Micro Focus falls 8% and hits your stop-loss. Your loss would be £800.

This is provided for information purposes only. It should not be taken as a recommendation.