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.

Wednesday, July 14, 2010

Flight of the IBEX?

Its been a good month for Spanish sport (Spain in the World Cup, Nadal at Wimbledon, Jiminez in the French golf) and the IBEX has also posted a very strong recovery. On the 100x3 (close) chart, a double top buy signal was recently given at 10,100, with an activated upside target of 12,600!! No time scale and clearly several downside targets in play but that's what the chart is saying. Note however that the index will have to push through the looming red bearish resistance line. Further good news on the economic front, successful rollover of existing debt, successful new debt issuance, GDP recovery in Eurozone etc will be needed to push this higher.... Oh well, at least they are good at sport!




The 25x3 has far too much noise in it for my liking but the recent price action and upside target is the same


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