Welcome to EV's point and figures. This blog is dedicated to the use of point and figure charts in technical analysis.

Although P&F first appeared in charts in the 1930's, it is an often overlooked techique for analysing stocks and charts. A poor relation compared to line and bar charts and their range of momentum indicators. Yet few charts provide a clearer picture of the daily battle between bulls and bears for market control.

Like most methods, it should not be used in isolation. It should form part of an analysts 'tool box' and be used with other techniques to help form an overall view.

The charts that appear on this blog and any accompanying comments are purely for information purposes only - my own personal take on where the prices may be heading. They do not constitute investment advice.

Thursday, April 29, 2010

It was a bad day for BP and unsurprisingly so. With 5,000 barrels of oil leaking in to the Gulf of Mexico and lawsuits pending, the shares ended the day down about 6%. The upside target of 635p was reached but we now have an clear double bottom sell signal, with an activated downside target of 520p. BP was trading with an attractive dividend yield of over 6% but that could be under threat now.

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