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, September 22, 2011

FTSE update (2) - triple bottom sell signal

That 5,050 support didn't hold for long! The break through 5,050 now brings 4,500 in to play - an active target to the downside.

The pattern still looks like a forming right shoulder to me and noting the support that the FTSE has had previously at this level, it is possible that the shoulder will continue to develop and the market will reverse higher, up to 5,300.

The other alternative is the shoulder breaks now and we get a 'hard down' progressive drop down through 4,800 (a previous level of support) through 4,500 and down towards 4,100.
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