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, January 26, 2012

BHP Billiton - completing right shoulder?

If the FTSE is going to turn lower it will be led by the high beta mining and bank stocks, which have had an amazing run through Dec.

BHP Billiton share price has filled the gap left at 2160p and 2200p. If this a head and shoulders, it should not go much higher than 2250p (note the lower low at the bottom of the 'head'). RSI currently 71 and Slo Sto 91.

The Weekly chart provides a bit more clairty as to the pattern. Shares currently 2207p, so we will soon find out whether this would be head and shoulders pattern materialises.