CH15 P4: Currently, Charlotte Art Importers is selling at $23 per share. Although you are somewhat dubious about technical analysis, you want to know how technicians who use point-and figure charts would view this stock. You decide to note one-point movements and three point reversals. You gather the following historical price information:

Date Price Date Price Date Price

4/1 2312

4/18 33

5/3 27

4/4 2812

4/19 3538

5/4 2612

4/5 28

4/20 37

5/5 28

4/6 28

4/21 3812

5/6 2814

4/7 2934

4/22 36

5/9 2818

4/8 3012

4/25 35

5/10 2814

4/11 3012

4/26 3514

5/11 2918

4/12 3218

4/27 3318

5/12 3014

4/13 32

4/28 3278

5/13 2978

Plot the point-and-figure chart, using Xs for uptrends and Os for downtrends. How would a technician evaluate these movements? Discuss why you would expect a technician to buy, sell, or hold the stock based on this chart.