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, October 11, 2010
Hang Seng: looking good but...
Normally rising bottoms and rising tops is pretty bullish, but notice the black circle. We had this last year, then the market got to 22,750 and looked like it was going to roll over beautifully through H1 2010, only to confound the bears and move higher.
We are now back at that 22,750 level of previous resistance. A move to 23,250 (filling the 23,000 box) would (on balance) look pretty supportative of those activated upside targets. But can it punch through this resistance?