Will Micro Focus turn, or will it continue to rise beyond 1880p?

• The chart shows Micro Focus price action over the last 7 weeks.
• Shares in a 2-week uptrend from 1250p lows; now at 1556p.
• Shares broken above last week’s highs of 1523p.
• Shares -41.5% from 2018 highs; +95.3% from 2018 lows; -38.3% year-to-date
• In the last month, the shares have risen by 30%. Will this momentum continue?
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

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 1556p. To do this, you need £2,000.

Let’s assume Micro Focus trend continues to close the March gap from 1880p (+20.8%). Your profit would be £2080, 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.