A stock on the road to resurrection

TL;DR

Former high-flying tech stock, facing collapse, shows potential for a sharp reversal and significant gains.

Transcript

hello it's john burford with chart of the week for monday the 30th of november and i'm covering microfocus international which was a former or is a former a high-flying technology software company that uh enjoyed uh very good markets up until the high in 2017 three years ago and from that point on it just collapsed it was uh 27 pounds here the low ... Read More

Key Insights

• ❓ MicroFocus International stock plummeted from £27 to £2 in 2017.
• 📈 Chart displays an ABC corrective pattern indicating a potential sharp upward movement.
• 💪 Strong momentum divergences and gaps suggest a positive reversal for the stock.
• 🌊 The C wave pattern hints at a substantial gain potential for the stock.
• ❓ Significant buying pressure indicated by momentum divergences.
• 🎯 Potential targets for MicroFocus International stock predicted at around £8 to £14.
• 🌊 Smart money entering the market is suggested by the shallow fifth wave in the C wave pattern.

Questions & Answers

Q: What led to MicroFocus International's significant drop in value?

MicroFocus International faced a collapse from its high-flying status in 2017 due to various market factors leading its stock price from £27 to £2.

Q: What positive signs does the chart display for MicroFocus International?

The chart reveals an ABC corrective pattern and strong momentum divergences, indicating potential for a sharp reversal and significant upward movement for MicroFocus International stock.

Q: How do gaps in the chart influence the potential outcome for MicroFocus International?

Gaps in the chart act as magnets, pulling the stock price toward certain levels, with potential gains predicted at reaching around £8 to £14 from current levels for MicroFocus International.

Q: What is the significance of the C wave in MicroFocus International's chart?

The C wave shows a convincing five-wave impulsive pattern, with shallow waves indicating the smart money coming in, suggesting a sharp reversal and substantial gains for MicroFocus International.

Summary & Key Takeaways

• MicroFocus International stock, once high at £27, plummeted to £2 in 2017.

• Chart displays an ABC corrective pattern indicating a potential sharp upward movement.

• Momentum divergences and gaps suggest a positive reversal for the stock.