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, March 30, 2011

RUT: new targets to the upside

Today's high/low 5x3 P&F - a new higher high, taking out the previous high column of X's, giving an active target of 955. There is also another active target at 990 and those previous targets from the bottom (810 and 830) have been met. There is still potential for this to reverse sharply but the current picture does not support this view.

The 5x3 'closing' P&F which only focuses on the closing level of the index also shows a new high today, higher than the previous high column of X's and an active target to the upside of 930.

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