Is this trend a good trading opportunity?

Will Micro Focus turn, or will it continue to rise beyond 1450p?

• The chart shows Micro Focus price action over the last 2 months .
• Shares in a 2-month uptrend from August 1175p lows; now at 1437p.
• Shares broken above Jun-Jul highs of 1400p.
• Shares -44.9 from 2018 highs; +83.8% from 2018 lows; -42.9% year-to-date
• In the last 2 month’s, the shares have risen over 22%. Will this momentum continue?

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Trading Micro Focus– An Example

Let’s say the trend appeals to you, you think it’s likely to continue. You decide to buy exposure to £10,000 worth of Micro Focus using a CFD, at the current price of 1437p. To do this, you need £2,000.

Let’s assume Micro Focus trend continues to close the March gap from 1880p (+30.8%). Your profit would be £3082, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Micro Focus falls 5% and hits your stop-loss. Your loss would be £500.

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