Hi NAI never claimed that chart is driving the SP.Of course it...

Hi NA

I never claimed that chart is driving the SP.

Of course it is the company's performance that is reflected in the chart, not the other way around.

I have been following CBD for quite a while, been impressed with its performance, bought shares.

I was a bit disappointed with the convertible notes deal and subsequent unloading by HH, which damaged SP for a while.

That was reflected in the chart and the 40SMA indicator.
The indicator also reflected the recent increased interest and direction in SP..

I am one of those investors who select potential investments on fundamentals and then use the technical analysis for timing of the purchase. And as exit signal when SP turns.

I should have been out in early October, when SP crossed 40SMA at about 14.5, but I liked CBD too much and did not think it would get as low as it did.
Ignored the old saying that one should not fall in love with stock. LOL.

So I stayed put and just alerted others, when I saw a re-entry point.

I like to use 40SMA for that. Everybody is different.

As for resistance lines, they are pretty basic concepts, easy to understand why they work.

Broken resistance often becomes new support if large enough volume was traded.

I also trust RSI overbought, oversold indicators to some extend.
Anything more fancy I always take with a grain of salt or three.