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, October 12, 2010


Intel's 0.5x3 closing P&F. The current picture remains bearish, with an activated downside target of $13. Bullish support line is in place at the $16 level. To the upside, that $36 target (post the huge rally from $12-$20 from last year) is still in tact.

Lots of euphoria over Intel's Q3 earnings and Q4 margin outlook but in reality, sales of $11.1bn were at the top end of their own guidance (which in August was revised down from their previous range of between $11.2bn to $12bn). It's a spurious 'beat' of consensus forecasts. Lets see how the shares go over the next few days. A move below $17.5 would lend some weight to that downside target as it would create a lower column of O's than the previous column.

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