A game changer for Card Factory

Card Factory (LSE:CARD)

Recent news of Yellow Pages final demise reminded of the thump when an unopened copy hit the bottom of an empty wheelie bin. A secret hope that a similar fate awaits the greeting card industry appears a wasted dream.

Despite the internet and common sense, people still insist on sending greeting cards to celebrate mediocrity. Which brings us to Card Factory (CARD) and its share price.

When we view its downtrend since 2015, it appears pretty nicely designed, hinting that any movement fairly soon above 343p (the blue line on the chart) should bring an initial greeting to 361p with secondary, if exceeded, at a longer-term major occasion of 404p.

We’ve designated 404p as a major occasion due to this matching (okay, slightly bettering) the share price’s all-time high back in September 2015.

It would be utter madness not to expect some dramatics at such a level, if only due to those whose funds were trapped at the prior high liquidating and causing a deluge of sell orders.

The unpleasant reality for those so effected comes if the share price actually manages to close above the 400p level.

Our inclination will be to regard this as a bit of a game changer for the price, requiring another stir of the tea leaves as, while we’re calculating 448p above this point, the reality could prove quite a bit higher.

We do suspect CARD shall prove worth keeping an eye on during the coming weeks, ideally for closure above 343p as upward travel should prove difficult to restrain.

Any attempt to slow the share down requires the price to fall below the red line on the chart, at 295p currently, and below the dashed red line, at 236p, would scare the heck out of us as a decline to 220p and 150p eventually would appear inevitable.

Alistair Strang has led high-profile and “top secret” software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know “how it worked” with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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