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Alf Field's inaccurate chart dataDr. Clive Roffey I refer to Alf Field's recently published unfortunate and completely inaccurate analysis of the point and figure chart of the gold price.  He based his whole analysis on the premise that his chart, reproduced above, is a 5 block reversal picture. A quick glance at the chart will show that is completely inaccurate. I have circled numerous areas on the chart where there are only 3 and 4 block reversals. This is NOT a 5 block reversal but a 3 block reversal chart. This make a huge difference to any supposed target count that is proposed from this data. In addition, even elementary P&F analysts know from Cohen that counts are taken across the widest point of the base and, NOT the breakout point. In addition they are added to the LOW of the base NOT the breakout point. As far as I am concerned the correct count out of this 3 point reversal chart is across the major base illustrated by the arrow. There are 119 blocks @ $5 x 3 reversals. This gives 119 x 5 x 3 = $1785 to be added onto the lowest point of $255 for a target of $2040. This is a far cry from the totally inaccurate $4000+ level that Alf Field postulates. I have redrawn Alf Field's chart on a correct five point reversal basis and it gives a very different set of answers. There is only a 54 block count across the base of $5 and 5 block reversal for 54 x $5 x5 = $1350 to be added to the low of $255 for a $1605 forward target projection. IN addition there is a 23 block vertical count off the base that gives 23 x$5 x5 =$575 to be added to $255 for a count to $830 as an intermediate level. Thus I would look at $1600 as a far more realistic target than $4000+ for this gold price based on Alf Field's point and figure gold price chart. Clive Roffey January 16,
2006 'Gold & Silver Penny Stocks' is the sister publication to 'Gold Action' and is produced by Dr. Clive Roffey; croffey@mweb.co.za
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