Card Factory (CARD)

 

A share made for Valentine’s Day

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A share made for Valentine’s Day

Card Factory Plc (LSE:CARD)

As we wake up to one on the traditional days of wasting money on greeting cards (Valentine's Day for the sane aloof), a look at Card Factory Plc's (CARD) share price potentials seemed justified, especially as it is ISA capable.

The funny thing is, the word greeting has an entirely different meaning in Scotland and makes us wonder if there's a lack of interest in this industry north of the border.

This isn't a joke. In Scotland, greeting means crying and thus, why would anyone be interested in giving a "crying card".

Language can be a funny thing.

However, the industry which finds ways to celebrate nothing appears to have a company on the verge of becoming slightly interesting. To get the bad news out of the way first, closure now below 227p would be a bad thing, generating the excuse for price reversal toward 150p. We cannot calculate anything accurately below such a point.

As the chart shows, the price is very obviously reacting to the 'blue' downtrend in a way, which suggests the recent drop to 232p was perhaps sufficiently close to 227p and signals some inherent strength.

We shall not be aghast if the price makes another lunge downward again toward 227p before a surprise recovery above 'blue'!

chart1

This brings the argument - for the weeks ahead - of any price growth bettering 'blue' - currently 256p - as leading to an initial 267p. Secondary, if 267p is bettered, comes in at 290p, maybe even 342p if we're witnessing an attempt to cover the circled manipulation gaps.

With the share currently trading at around 245p, the best we're proposing if everything comes right is a rise of 100p. That should be sufficient to cover the quid wasted on a Valentines card at the petrol station! Some years, I even suspect our dogs don't appreciate them.

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.