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 1, 2011
FTSE 100 - on the line
See how the FTSE 100 has held support from the July 2010 low. It did briefly dip below the Nov 2010 resistance level but got some support from the April 2010 peak. I'm not sure its ready to roll over just yet. I'd be looking for a more decisive move below the horizontal line to pursuade me. UK Banks are all due to report FY results in coming weeks. Still a key FTSE sector, along with Pharmas, Oil and Mining.