Micro Focus: Another Short Squeeze +31% Today

MCRO joined the sharp reversal plays today  when a better than expected TU fuelled a 31% rise from a pretty low base: the beleaguered UK based software and consultancy firm has had a precipitous fall from north of £22 in 2019 to under 200p in 2020. Today saw it rally 31% to close near its highs at 351p shy of its 200MA but on strong volume. The 2020 pre Covid high was almost 1200p suggesting there is more to run though the RSI is extended above 80 which suggests some consolidation and profit taking is likely before another leg north. MCRO spent most of the summer in a narrow range revisiting lows not see since 2011 before a 25% rally over the past week of trading into results

MCRO joins 12 other shares which have rallied between 25% to 75% over the past 10 trading days all of which had short interest in the region 2.5-10%

MCRO Daily Chart 2020

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