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, June 30, 2011
Thursday, June 23, 2011
Tuesday, June 21, 2011
Given that 5,875 was previously a level where the market found support on several occasions (note the blue horizontal line) it would be perfectly reasonable to suggest that this could now become a level of resistance.
I also drew that slightly upward sloping line which shows much more clearly on the candle chart. Conversely, another 3 box reversal and a move below the current support level of 5,650 would be very bearish imo.
Thursday, June 16, 2011
This IShare tracks the performance of the FTSE 250 Index, a mid cap index of the 250 largest companies by market cap outside the FTSE 100. The Ishare prices about 10% of the index level, so at present the index is 11,500. Anyway, its been on a tear since 2009, but appears to be rolling over.
The IShare has been in a 'range' since may of 1,165 and 1,200. See how the bulls tried on 3 occasions to push the index above 1,200 (12,000) but were unable to do so.
The IShare has now fallen out of the range and the first target from the top to the downside of 1,095 is now active. Bullish support has been broken and we now have bearish resistance. The index may get some support at around 1,120 to 1,125, where it got support earlier in the year prior to the Fukushima dip and and bounce.
On this 1x3 H/L chart, the first downside target from the high (57) is active. There is a new target of 28(!) which is currently inactive but would be activated if TNA goes below 68 intraday ((ie the current column of 0's goes beneath the previous column. It is slightly ominous that on this chart, the index has moved below the 69 level where it found support previously, but as its hovering 'around' that level, the bears should be looking for a decisive move lower. I'd certainly be looking for a move closer to that 57 active target.
It can be seen that we did have a reversal to the upside recently: that column of 5 X's has given an unactivated target of 83, which needs another reversal to the upside and a move through 74 to be activated.
If we got a reversal TODAY, that column of 0's would give an unactivated target of 660, which would be active if the index reversed down and moved below 775. Interestingly, that would take the RUT right on to its long term blue bullish support line, based on this closing method.