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.

Wednesday, November 10, 2010

US 30 yr Tres Yield

This is the 0.025x3 closing P&F on the 30 yr Tres yield. See that the old bearish resistance line (red) has now been breached and we have bullish support (blue). That's bullish for the yield, bearish for the price!

An activated upside target of 4.58% equates to a price of approx $88.60, given the bond's modified duration of 16.57. Currrent price is $96.07, so that's a fall of 7%.

This chart could easily be quashed by some wayward QE but for now these targets are in play.

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