You asked "how can you possibly predict share prices with a...

You asked "how can you possibly predict share prices with a graph?' I don’t know much aboutcharting but what Michael W Covell said in his book Trend Following is thatthere are essentially two forms of Technical Analysis.

One form is based on anability to “read” charts and use indicators to predict market direction.

The other type of TAneither tries to predict or forecast. This type is based on reacting to priceaction. Instead of trying to predict a market direction, trend followers’strategy is to react to the markets actual movements as they occur. Thisenables them to focus on the markets actual moves and not get emotionallyinvolved with trying to predict direction or duration.

In the second form trendfollowers follow the trend. The long term trend is up, but the short term trendis down. It depends on your timeframe for holding. If you are a long term holderthe trend is still up. But there are some here who have a shorter time frameand are only holding if there is momentum.

As people have said thecharts can’t take into account any future announcements. If there is no newsuntil Christmas the chart will look quite different to what it will look likeif a million dollar contract is announced next week.