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.
Tuesday, July 20, 2010
Goldman reports today
All that said, we are looking for directional guidance here and I say lower - recent support at $150 has been broken. The filling of the $145 box gave a double bottom sell signal. The 'shape' of this chart does not currently provide for any upside price objectives. To the downside, we now have an activated price objective of $70, no time horizon. If the results surprise to the upside and we get a 3 box reversal today and a new up column of x's (would require a move of $15 to fill 3 boxes), the next (unactivated) target (from the last column of nine 0's) would be in the order of $45.