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.

Thursday, May 26, 2011

Russell 2000

The 25x3 P&F on the RUT. Both the high/low method and closing method have an active target to the downside of 760.

The long term bullish support line is still in play on the H/L chart above. The recent move down has taken out the more minor support but until the main trend line breaks, the overall uptrend is said to hold.

To show no bias I have included an upside target on the 'closing method' 25x3 P&F above as technically its still there and active. But it can be seen that the most recent action is bearish, with the previous level of support being taken out at 830. Again, the main bullish support line is nowhere near to being challenged but the index is pushing on those minor support lines that i've added.

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