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.
Tuesday, July 19, 2011
But see also, we now have resitance at 21.5 and an unactive target of 17 which will activate if the Vix falls below 19.5.
So the question is which will break first -the support at 20 or the resistance at 21.5? It's such a tight range, we will see very soon.
Friday, July 15, 2011
Thursday, July 14, 2011
From the most recent top at 92, we then got a 3 box reversal and a colunm of 9 0's which has since reversed, giving a target to the downside of 65. But this has not been activated -for it to activate, we need to see TNA fall below 83, that is, filling the 82 box.
So 83 is the level to keep an eye on.
There is still bullish support on this chart as denoted by the blue diagonal line. The 1.5x3 chart gives a target to the upside of 94.5, so if 83 is not taken out, its possible TNA will challenge that May high. But the way markets are flapping around at present, it needs close monitoring. We'll soon see.
Monday, July 11, 2011
Thursday, July 7, 2011
Monday, July 4, 2011
The FTSE 100 posted its best weekly gain in a year last week, up 5.1%. Stripping out lots of noise, it can be seen on this 50x3 high/low chart that the Index has now got back in to an area where it has faced significant resistance so far this year.
The pattern has quite a nice 'symmetary' to it but for that to continue, we need to see the index reverse lower, and quickly. Any move above the levels of previous resistance and through 6,150 would have to be seen as a win to the bulls and we'd have to look at potential targets to the upside.
Even a hold at todays level would re-establish the blue bullish support line (as at 6,000, that top 'X' has pushed above the red bearish resistance line.