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Maybe this isn't exactly the right topic, but I decided to post it here. =)
I've been wondering for a while how Chain Lightning works, whether it can be interrupted (by magic resistance). I just tested it.
It turns out that when it transitions from one target to another, the resistance is checked each time. So, if you take, for example, a formation of units numbered in order 1, 2, 3, 4, 5, 6, 7, 8 and cast it on #1, then...
If there is no resistance (or it doesn't trigger), units 1, 2, 3, 4, 5 will take damage (let's assume we have expert air magic).
If resistance triggers on the first unit, the chain will immediately break.
If resistance triggers only on the second unit, the chain will continue, and units 1, 3, 4, 5, 6 will take damage.
If resistance triggers on units 2, 3, 4, 5, the chain will continue, and units 1, 6, 7, 8 will take damage.
I even had a case where the chain broke immediately after the first hit (only one unit took damage). I conducted the experiment with dwarves and unicorns, with artifacts equipped to increase magic resistance.