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, July 22, 2010

Apple; double bottom sell signal

No one can deny that Apple has generated superb returns for investors in recent years but maybe now we might be due a short term pull back. See the shorter term bullish support has been broken and the current column of down 0's has given a double bottom sell signal, having fallen below the previous column of eight 0's and filled the box at $246. This gives an activated price target of $201.

But note also that Apple's recent chart has a fairly consistent pattern. Twice before we have seen high poles, followed by consolidation, then a sharp move higher. This time the tussle between bulls and bears has lasted slightly longer, so bears may just win this particular battle.

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