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

FTSE 100: stalemate

If you strip out the Fukushima 'dip and bounce', it can be seen that there is an epic battle being fought between the bulls and bears on the FTSE 100. The bears cannot push the index below 5,875 - its found support here 6 times recently. Similarly, the bulls have failed to clear 6,100 and
6,075 has also been a major obstacle.

The more recent action might encourage the bears. See how since the FTSE last touched 6,100, the bulls have come up against resistance at LOWER levels. - at 6,025 and more recently at 6,000. In other words the buyer pressure is subsiding and the selling pressure is stronger.

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