Friday, December 3, 2010

Toppy Commodities(2)?

Barrick Gold (US) NYSE $53.29 looks like a clean breakout on a daily and weekly bar chart and as noted earlier a Barrick run would be bullish for Barrick’s peers. Now whenever I have doubts about bar charts I always look at the Point & Figure (P&F) just to confirm the weekly bar chart

The good thing about the P&F is the “old” reputation along with the use of indicators restricted old fashioned 45 degree trend lines. This makes the P&F quite boring to the younger “squiggly line” technicians we see out there to-day. It is the under use of the P&F that makes it attractive to me. I see no point in looking at a daily chart with the same six squiggly lines that millions of other sheep are starring at. I clipped a P&F from to illustrate the Barrick has not yet made a clean breakout. The formant is a 3 box reversal and we can see that Barrick needs a close at or above $55 US to signal the breakout.


Anonymous said...

you can modify P&F chart settings to say whatever you want old man

Anonymous said...

Bill: Looking at a 10 year chart of the US dollar, I see a very bullish trend: large inverse head and shoulders, followed by a series of higher lows, and now a decending triangle is forming. Is the chart telling us that despite all the woes of the US, Europe (and the Euro) is in bigger trouble? said...

Hello Anonymous

I know of no way to alter or otherwise influence a P&F chart - if you know how - please let us know - never to late to learn

Bill C