Today's we've chosen to take a look at the point & figure chart
of Oshkosh Truck Corp.
). This type of chart is rarely used by beginner traders, but as you can see from the chart, the support
levels can be easily identified for those who learn about them. Point & figure charts are constructed by a number of columns that consist of a series of either stacked Xs or Os. A column of Xs is used to illustrate a rising price, while Os represent a falling price. This type of chart is not dependent on time and it filters out random noise by only changing direction once a predefined reversal amount
has been reached. Notice how the stock bounced off the support near $55, which will continue to be an influential factor on the stocks momentum. We could see this stock remain range-bound between the horizontal support/resistance levels, but we'll keep a slightly bullish bias because of the ascending trendline.