Problem 5-08

Currently, Charlotte Art Importers is selling at $24 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	24		4/18	27		5/3	28
4/4	29		4/19	26		5/4	29
4/5	29		4/20	23		5/5	31
4/6	29		4/21	22		5/6	33
4/7	30		4/22	22		5/9	33
4/8	31		4/25	21		5/10	35
4/11	31		4/26	22		5/11	31
4/12	29		4/27	24		5/12	28
4/13	29		4/28	26		5/13	28

Choose the correct point-and-figure chart where Xs are used for uptrends and Os are used for downtrends.

The correct chart is -Select-chart Achart Bchart Cchart DItem 1 .

A.

41
40
39	X	O
38	X	O
37	X	O
36	X	O
35	X	O
34	X	O
33	X	O
32	X	O
31	X	O	X
30	X	O	X
29	X	O	X
28	X	O	X
27	X
26	X
25	X
24	X
23
22
21
20

B.

41
40
39
38	X	O
37	X	O
36	X	O
35	X	O
34	X	O
33	X	O
32	X	O
31	X	O
30	X	O
29	X	O
28	X	O
27	X	O	X
26	X	O	X
25	X	O	X
24	X	O	X
23		O	X
22
21
20

C.

41
40
39
38
37
36	X	O
35	X	O
34	X	O
33	X	O
32	X	O
31	X	O	X	O
30	X	O	X	O
29	X	O	X	O
28	X	O	X	O
27	X	O	X
26	X	O	X
25	X
24	X
23
22
21
20

D.

41
40
39
38
37
36
35			X	O
34			X	O
33			X	O
32			X	O
31	X	O	X	O
30	X	O	X	O
29	X	O	X	O
28	X	O	X
27	X	O	X
26	X	O	X
25	X	O	X
24	X	O	X
23		O	X
22		O	X
21		O	X
20