Will Micro Focus break support, or will it rise again back to 1450p highs?

• Micro Focus has a suport level at 1178p since mid-April, bouncing 4 times, most recently this week.
• Now trading 1200p (at time of writing).
• Shares -54.4% from 2018 highs; +52.1% from 2018 lows; -52.5% year-to-date.
• IBM’s acquisition of open source software company Red Hat is supportive of tech stocks.
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Micro Focus – An Example

Let’s say you like the Micro Focus chart and you think the price is heading back towards 1450p again. You decide to buy exposure to £10,000 worth of Micro Focus using a CFD, at the current price of 1200p. To do this, you need £2,000.

Let’s assume Micro Focus rises back to 1450p (+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 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.