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, October 4, 2011

World markets update

A lot of these patterns are developing faster than I can update them but here's the current read. These are all daily, high/low charts, so all 'bigger picture'.

Starting with the Dow (100x3) the 9,600 target is active and there is a target of 8,800 which is not active - need to see the index move below 10,500 to activate it. To the upside, the target of 12,700 is not active. We would need to see a three box reversal and a move up through the previous high of 11,300.

.The declines in the S&P 500 (10x3) since last Thursday have activated a new target to the downside of 920 and (as with the Dow). I still like the 1,040 target, as it was the first one given from the high. I can put an 'uber-bearish' target of 650 on the index, on the grounds that the index has breached the level where it previously found support. It may never be achieved (not all these targets are) but its a valid target nonetheless.

. The falls from last Thursday give a new active targert of 2,040 on the Nasdaq (20x3) but note the index is currently perched at a level where it found support on two previous occasions. No obvious targets to the upside.

.Both these targets on the RUT (10x3) are active.

.The Hong Kong (250x3) market continues to grind lower - so much for international diversification!

.Still looks like a forming head and shoulders on the FTSE 100 (50x3) chart. I missed in on the labelling but there is in fact a target to the upside of 6,000 on the index, given by the most recent columns of X's. It is not active - we would need to see the FTSE reverse higher and take out 5,350. To the downside, 4,500 is active, while 4,050 and 2,500 are not (unlike the Dow and SPX, it can be seen the FTSE has yet to make a lower low from the Aug sell off).

.The CAC 40 (50x3) has an active target to the downside of 2,350 (2,950 from the high was met) and there is currently a target to the upside of 3,750 which is not active. The bulls would need to push the index through 3,050, where it has recently met resistance on two occasions.

.And finally, on a slightly more positive note. the DAX (100x3) seems to have found some short term support at 5,000 and there is an active target to the upside of 6,800. A reversal and move through 5,800 would lend support to this target, as we would then have higher highs, higher lows (ie a double top with a rising bottom and also a triple top buy signal).

No comments:

Post a Comment