Will Micro Focus continue falling, or will it recover to recent 2175p highs (+18%)?

• Shares down 15% from recent highs; 
• Now 1846p (at time of writing).
• Can the stock recover recent 2175p highs (+18%)?
• Shares -15% from 2019 highs; +39.4% from 2019 lows; +33.5% year-to-date.
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

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Trading Micro Focus – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards 2175p. You decide to buy exposure to £10,000 worth of Micro Focus using a CFD, at the current price of 1846p. To do this, you need £2,000.

Let’s assume Micro Focus recovers back to 2175p highs (+18%). Your profit would be £1800, 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.