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 16, 2011
iShare FTSE 250 (for FTSE 250 Index)
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.