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.

Monday, July 4, 2011

FTSE 100 - where next??

Too early to tell i'm afraid. Note the 'symmetary'.

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.

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