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, May 18, 2011

$BKX

Its interesting to note that this index 'lagged' the QE2 euphoria - sure there was a bounce in Sept but the index did not really shoot higher until Dec/Jan (as denoted by that column ox X's with the number 1 in it (1 being January)). Note that that move pushed the index up towards the 56.5 target given by the initial reveral in September.

Following that move through Jan, the index has reversed and on this 0.5x3 closing point and figure chart, there is currently an active target to the downside in place of 42.



The 0.5x3 chart based on the daily high/low method is also pointing lower. Having peaked in Feb at 55.5, the move down from the top as denoted by the column of 7 o's gave a target of 45 which was activated by the next column of 0's. The bears have been successful in pushing this index lower - since April, each time the bulls came back in and moved the price up, sellers came back in at lower levels than seen previously.














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