Even if you do a thorough fundamental analysis, there will be times when you’re wrong. Perhaps there is bad news brewing that insiders know, but haven’t made public. Maybe your candidate is about to be blindsided by a competitor’s superior product. It’s possible that you’ve overlooked an economic trend, such as changing interest rates, that will adversely affect your candidate’s market.
Whatever the reason, you can often avoid unnecessary losses by looking at a company’s stock price chart before you buy. You don’t have to be a charting maven to get useful information from a chart.