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, January 19, 2011

Gold - short term target 1,270; long term picture still bullish

I was watching David Linton's 'charts of the week' posting today (he was using mainly P&F and cloud charts) and he referred to some 'spectacular' long term price targets given by the P&F chart. I was naturally keen to investigate.

It can be seen that all those activated upside targets from 2009 have been respected, as gold moved up towards 1,400. I have circled in red three occasions where sell signals were given, only for the price to reverse higher and give new targets to the upside.

At present, another sell signal has just been activated, with a target in place of 1,270. So we are at an interesting juncture. The longer term picture remains bullish and if the gold price was to push to a new high (ie filling the 1,430 box), those higher targets will remain firmly in play. The fact that we have what appears to be a double top at 1,420 makes this quite an interesting battleground for bulls and bears. There is clearly a struggle going on in the 1,340 to 1,420 range.

A further review will be required if that 1,270 target is reached then reverses.

Friday, January 14, 2011

NYSE Bullish Percent Index

Getting close to 10 year high. Pls refer to previous post on 27th October for explanation

Wednesday, January 12, 2011

IBEX: up 5% today

Here is the closing 100x3 P&F chart on the IBEX, following today's mega 519 (5%) rally. Seeing a triangle formation. The move out of the triangle and direction are the things to watch, provided that patten plays out (normally requires 5 columns, which would mean a 3 box reversal to the downside to reverse today's rise to play out). I had something similar with the FTSE a while back which failed, but for the IBEX i'm not envisiging a similar rally tomorrow, although if the bond auction goes well.........