I also prefer to use TA to support the fundamentals of a particular market or stock. However, to completely discount technical analysis would deny the investor of a useful tool in his/her decision making process. Anyone who uses it exclusively to make their buy and sell decisions would be setting themselves up for failure since you cannot override the fundamentals.
Simply pull up a five year chart for silver and the XAU and you will observe the undeniable trends that have been formed by the fundamentals of a bull market in precious metals. Stocks do become overbought and oversold and knowing this lowers your risk of buying or selling at the wrong time.
Jim Sinclair himself is a major proponent of buying and selling 1/3 of your position on weakness and strength, respectively, until recently where he has retracted this advice due to the volatility and potentially explosive nature of gold and gold mining shares.
There are no guarantees of course and not with standing external market forces, this could potentially be an ideal buying opportunity for ECU. Similar to when silver bounced off the bottom of its long term lower trend line in August, ECU is now positioned to bounce of its long term lower trend line.
