I've come to believe in Technical Analysis -- up to a point, because enough other people follow it that it actually does affect markets. For example, when Intel was climbing in February, it hit resistance at 90. You could see that this would be a resistance line from looking
at the chart. You could also see, if it broke through 90, it would break through significantly. (In this case, up to 96).
Today, the TA people are looking at the 50 and 200 day moving averages for Intel. They are 80.6 and 83.1, respectfully. If Intel were to close near or above 80.6, that would be bullish (short term!), because the TA people would think it was bullish, and would then start buying tomorrow.
Of course, TA sometimes fails miserably. But so does everything else.
Ed A. |
