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, February 15, 2011

30yr Treasury Yield

The previous activated target of 4.65% on this (0.05x3) closing P&F was recently met. To the upside, there are two active yield targets now in place, at 5.65% and 5.35%. In price terms, those yields equate to a prices of $87.06 and $91.08 per $100 respectively (current price c$101). The modified duration on this bond is 15.9, ie a c16% decline in price for every 1% move in yield.

Clearly there are no targets to the downside currently in play. If the yield can push through that previous high at 4.85%, it would strengthen the argument for a sharp move higher.


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