Charts versus Fundamentals

Recent events with the changing SP for Lynas reinforce my belief that Charts reflect the past and do not reliably predict the future. An examination of the fundamentals is by far the best way to establish a value. Because of the belief by some and the extensive use of charting by traders there is a relationship between share price and the chart predictions for a period but in the end the fundamental facts relating to the stock will establish the true value.

If you are after a quick buck you ignore fundamentals at your peril. What more evidence do you need than this last week watching LYC. It was fundamental facts that got it off a low but it was charting that took it too far too fast. I believe that lemming spec traders relying on charting have taken it too low now.