Will Micro Focus break resistance, or will it fall back to 1505p?

• Rising Channel since October
• Turned down from ceiling (1750p) to trade 1675p (at time of writing)
• Will the pattern repeat itself, falling back towards 1505p?
• Shares -34.7% from 2018 highs; +117.8% from 2018 lows; +21.1% year-to-date.
• 14 Feb: AJ Bell says MF looks past acquisition issues
• 14 Feb: Citigroup says MF shows signs of improvement
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Micro Focus – An Example

Let’s say you like the Micro Focus range, you think it’s heading back down to 1505p again. You decide to sell exposure to £10,000 worth of Micro Focus using a CFD, at the current price of 1675p. To do this, you need £2,000.

Let’s assume Micro Focus falls back to 1505p (-10%). Your profit would be £1000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Micro Focus rises 3% and hits your stop-loss. Your loss would be £300.

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