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, 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.