Skip to main content
This Board Has Moved

This board has been migrated to our new platform! Check out the new home page at or click below to go directly to the new Board on the new site.

Go to the New Site
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
There are market participants who act on this kind of thinking, so it can take on aspects of a self fulfilling prophecy, IMO, at times, if nothing else.

The technical analysis is based on the price action. But the price action itself is dictated by fundamental analysis. There are people who find stock is valuable at certain price level, and when it gets there they come in and buy. That's how you get the support.

The number of people who buy based on TA support is far less than the folks who come in to buy based on fundamentals. That's also the reason why when an material event takes place like earnings, M&A, or a product failure, competitor product, or pandemic, those support points vanish or melt like ice in a hot summer.

That's why I prefer TA for long-term than short-term. In short-term they are very noisy.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.