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.

Monday, August 16, 2010

Nasdaq update

This is a 25x 3 closing chart on the Nasdaq. Since peaking in the 2,525 box, the index has fallen back and we have an activated downside target of 1,775 in play. It can be seen that since the peak the bears have had success in pushing the market lower. As bulls have come back in, there has been clear resistance at the 2,300 level. On three occasions in recent weeks that level has been reached, only for bears to come back in and push the market lower And on two of those occasions so far, the market has made a lower low before reversing back up. It remains to be seen if this current column of 0's will continue this trend, ie fill the 2,075 box.

To the upside we have an unactivated target of 2,700. For this to become activated, we need to see the current column of 0's reverse (25x3) 75 points and a new up column of X's move through the resistance at 2,300, filling the 2,325 box. It's quite possible but the bulls will need to regroup and punch through this stubborn resistance. Note too this (red) minor bearish resitance line, just skulking above that level.

The long term (blue) bullish support line is still in tact.


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