Following a sharp sell-off triggered by weak quarterly guidance, investors seized the dip, driving renewed buying momentum in Card Factory Plc (LSE:CARD). The rebound reflects restored confidence as traders anticipate improved margins and stronger holiday-season performance ahead.
After the rebound, the company’s price momentum may face short-term resistance near its prior support-turned-supply zone. A brief pullback or consolidation could emerge before another upward drive, provided that volume remains strong. Should buying pressure persist above the 50-day EMA, the stock might establish a fresh mid-term bullish channel toward higher valuation regions.
Resistance Levels: 110, 115, 120
Support Levels: 95, 90, 85
Could Sustained Buying Pressure Above the 50-Day EMA Confirm the Formation of a Bullish Channel?
Sustained buying pressure above the 50-day EMA could validate the emergence of a bullish channel, signaling renewed upward momentum. This pattern often attracts momentum traders anticipating continued strength and potential breakouts toward higher resistance levels.
The positional postures of the Stochastic Oscillators have been systemically extended into the overbought region. In the meantime, the trend line of the 15-day EMA has been striving to curve northward from underneath the 50-day EMA, indicating a potential buildup of momentum toward another short-term bullish move ahead.
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