A range trading opportunity for you?
Will Micro Focus break support, or will it rise back to 1700p?
- Rising range channel since last Aug-Sep.
- Broken out of a narrower recent 1442-1516p sideways range.
- Now trading at 1533p (at time of writing)
- Will the pattern repeat itself, rising back to 1700p channel ceiling?
- Shares -0.7% from 2018 highs; +15.7% from 2018 lows; +10.8% 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 up to 1700p again. You decide to buy exposure to £10,000 worth of Micro Focus using a CFD, at the current price of 1533p. To do this, you need £2,000.
Let’s assume Micro Focus rises back to 1700p (+10.8%). Your profit would be £1080, 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 falls 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.