Great results today so lets hope that the share price holds.

Technical Analysis: how to profit from MFI's misery
Published: 07:03 Tue 16 Dec 2003
By William Akerman, Chief Executive of Quantigma
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Shares in MFI Furniture have come unstuck over recent weeks, leaving investors wondering whether they forgot to use all the right parts when building their portfolio.

Following a disappointing end to last Friday's trading, technical analysis can identify where good strength will underpin seemingly inevitable further weakness.


Looking back, MFI Furniture (MFI) has risen from a low of 30p in 1999 to a 2002 high of over 170p. This astonishing rise finally met resistance, forcing the share price rapidly back to below 100p in the following months.


This negative move gave way to a new bull trend, carrying the stock to an October high of 190p. And this is the point where things started to fall apart for the UK's largest furniture maker.


From the highs of 190p, shares have collapsed to last night's close of 132.5p, all within the space of just two months, helped by a warning in November that second half trading would be 'volatile'.


So where now for the well-known retailer? It is hard to imagine that the rapid subsidence is coming to a halt at present values. More likely is a continuation and further depreciation until a support level is reached.


This support comes from two places, currently intersecting at the same price. Firstly the up-trend that has carried MFI from below 40p now provides support at around 113p. This level is further strengthened from a horizontal level, previously offering support and resistance several times between 110p and 115p.


So in summary, expect further losses until the support levels are reached and consider buying shares at this area as the long-term up trend is still in place. Only a breach and close below 110p will signal an end to this overall bull formation.


Finally, the most negative recent commentary came from chief executive John Hancock, who remains 'pretty relaxed' about possible interest rate rises and his company's outlook. These comments often have a habit of biting back!


2003 Citywire

over 40 mill gone thru, up 8%, anyone hearing anything ??

still no info, "working lunch" and teletext seem to just gloss over it

Kingfisher looking to buy Howden.

Hello!!! Is anybody out there? Mass emigration to advfn? By my reckoning this deadwood stock is now owned by Goldman Sachs to the tune of about 22% What has happened to the rumoured bids from Apax Partners, Argyle partners & Merchant Equity & the like? Somone somewhere out ther must know somehting. The pension liability has been neatly disposed of & Llloyds TSB no longer have a controllable interest under the pursuance of the Companies Act 1986.