Technical analysis is the most preferred tool for short term traders. Although, both technical as well as fundamental analysis has their own significance in stock market analysis. But when it comes to short term investment, technical analysis has an upper hand over fundamental analysis. Moreover, it is simple and easily applicable if understood properly.
Technical charts provide a lot of information like support, resistance, chart pattern, momentum of the market, volatility etc. that helps the traders and investors build their positions and take trades. Hence it is not overrated, it os just one should have a proper knowledge about the same and should apply such tools carefully.