Chemtura Corp (fka CHMT)

[MarketGeometry]

I think you have misunderstanding about support and resistence concept. They are areas or zones-example- Resistence are area where there likely more sellers then buyers based on historical trading data and volume. They are not hard fast barriers. Once we close a resistence level it becomes a support level. These are useful for entry and exits where you can take profits or if you are long add to your position(at support levels). For investors fundmentals are more important and chart gives you a map of the current trend in the market. People who dont't understand technical analysis has to remember fundmental do not change but how the market will react to fundmentals will show up in charts-volume/accumulation distribution-candle patterns etc. charts show market psychology and trend which is different information than fundmentals(which is known to everyone). Both have different functions. When you combine both in your analysis you increase your probabilty of generating better RIO IMO. For example stock don't operate in vacuum. Sector performance and overall market direction will have infulence on stocks. Plus commodity and Bond and currency market has influnce on stock market. Thats why intermaket technical anlysis is also important IMO based on my understanding of technical analysis. The crash of 1987 in stock market was preceded by crash in Bond Market few months prior to 1987 crash. Bonds and stock usually trade together but commodity has inverse relationship with Bonds etc. Those who were chartist aware of intermarket technical analysis was not caught off guard during 1987 crash.