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, September 13, 2010

FTSE 100: Possible target 5,590

I'll be the first to admit i'm a dog with EWT (woof woof!) but he's a target for the FTSE. It looks like a minor (minutte) five wave up to me. A 76.4% retrace of the April high to the July low gives a target of 5,590, which is just outside the upper resistance line. The slo sto suggests this rally has limited upside but the FTSE slavishly follows the US markets so may get a further shot of adrenalin from the Dow and SPX.

Anyway, that's my guestimate! If it pushes on, a double top scenario seems most likely, as alluded to in a previous P&F previous post (see July: FTSE 100: the wicker man)

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