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.

Friday, October 15, 2010

Goldman Sachs - triangle wrecker!

This was the picture on 7th October, a nice potential triangle formation....

And here we are now. That pop to $155 has ruined my triangle and has also given a double top buy signal, having taken out the high of the previous column of X's at $152.5.
There is still potential for Golman to roll over - note the current level is where the first column of X's (that reversed the large column of O's down) reached before rolling over in August. In practical terms, this is a resistance level where sellers previously entered the market. For Goldman to push higher, we need to see this level overcome.

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