Technical Analysis is in it's simplest terms a historical record of price and investor sentiment. Just the analysis of any trend will provides into into the future direction, so to will TA of market trends. I have many times seen shares that have great fundamentals and good P/E ratios that should suggest a good investment option. However the historic price momentum trend tells another story with prices moving down. If one understands "how" to read the nuances of price momentum and consolidation phases, then you can use this momentum to project the continuing price movement.