knowing the industry before you invest, page-9

mookie,

i would argue you can use the two techniques hand-in-hand and even if one if murky it can still be useful. Sometimes TA give a clearer picture - sometimes FA.

e.g. for NMS, we will have enormous trouble estimating eps but we can at least make fundamental observations about debt to equity, dilution events and in the case of NOD, any possible capitalisation breaches that might arise against their loan book (I don't know the company well but noticed they initiated voluntary contact with their lender).

If we have some inkling of the fundamentals of a company, we can then study aspects of its chart and weight the probability of certain events occurring, e.g. gap fills above and below.

I always think its curious how price-moving announcements and events tend to occur at critical junctures on the chart. What moves what though? Who cares!