The function of chart reading through TA is to determine...

The function of chart reading through TA is to determine underlying strength or lack of it (momentum) in the share price that`s all .. it has nothing to do with considering only one or two of the fundamentals back drop..why this offends some people I can only put it down to misconception about the TA.process...there are many things that affect the momentum of a trending share price, fundamentals (of the company) are just one of those things, sentiment is another as we`ve just seen!..commodity prices, time of year, insider activity, tax selling, news reports, sovereign issues, day traders "pump and dump" takeovers, popular TA patterns!,..the list is endless and by the time you`ve worked out which of these it is your at the bottom! , momentum is the cumulative effect of all these fundamentals on price..this can be picked up early by looking at the price chart...the formation of a lower high followed by a lower low this is the first part of a trend change (buyers getting weaker/ sellers getting stronger) ...momentum vs just one or two fundamentals these are two different things.