EZ-PnF V2.1 Sample chart of the XAU index (05/19/98):

Notes:

• The chart is a 3 box reversal Point and Figure chart.
• The chart is based on daily high and daily low prices.
• The chart is a 2% logrithmic chart, ie each chart box represents a price change of 2% of the value of the box above or below it.
• Three possible support prices and five possible resistance prices are shown, as well as the support/resistance lines.
• A 'resistance' or 'support' point is a price where an issue's upward or downward price movement may 'stall'. The ultimate result of the 'stall' may be either a continuation or a reversal of price movement, depending on whether there are more or less sellers than buyers at the specific price point.
• The XAU is trading within an overall bullish trading channel. The chart may be forming what is called 'a broadening top' (a buy signal immediately followed by a sell signal with a final upsurge to the buy side). However, the pattern has not yet fully developed and it may be a false pattern. The XAU is at support point S1. Support may be seen at points S1, through S3. Support point S3 must hold to preserve the overall bulish trading channel.