A range trading opportunity for you?
Will Micro Focus break lower, or will it rise back again to 1600p?
- The Micro Focus rising range has developed since late October.
- Shares bounced off rising support zone, latest bounce off 1298p on 27 Dec.
- Now trading at 1405p (at time of writing).
- Will the pattern repeat itself, testing previous highs?
- Shares -46% from 2018 highs; +79.2% from 2018 lows; +1.5% year-to-date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Micro Focus – An Example
Let’s say you like the Micro Focus range, you think it’s heading back towards 1600p again. You decide to buy exposure to £10,000 worth of Micro Focus using a CFD, at the current price of 1405p. To do this, you need £2,000.
Let’s assume Micro Focus rises back to 1600p (+13.8%). Your profit would be £1380, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Micro Focus falls 6% and hits your stop-loss. Your loss would be £600.
This is provided for information purposes only. It should not be taken as a recommendation.