TLG Chart, page-3027

I think there's a place for TA. But all the charts in the world don't trump a fundemantel event. We might agree that charts are useful for timing certain entries and exits (we might quibble over how useful), but TA doesn't mean squat if something big shifts fundamentally.

A chart didn't predict the NEU rerate upon FDA approval of Trofinetite:


A chart didn't predict the LTR takeover offer - or withdrawl of offer 6 months later:


A chart didn't see the DDR FY22 numbers being disappointing, or the half-yearly numbers offering redemption (random exampe I know):


Across different sectors, timeframes, market caps, anyone relying solely on TA would have been caught with their pants down- or been pleasantly shocked one morning. But those folk watching the fundementals, and operating accordingly, had the advantage.

A poster on another forum (it might actually have been this one) pointed out that charts can become self-perpetuating if enough investors believe that they work, which imo is a very good point. Technical Analysis might tell us that TLG is bearish atm, fine. But if (for example) TLG sign a significant offtake agreement with Northvolt, VW, Stellantis, or Tesla, you can chuck the chart out the window and enjoy the ride. Post approvals, the announcements will flow, they could come thick and fast, and a chart won't be able to predict any of it.