$TSLA - Still at the Volume Shelf
$.SPX(.SPX)$ - Still at the Volume Shelf
8th indecision candle in a row, 5 DMA continues taming this beast that has changed its personality during the last year: Aggressive moves are expected, but lately after days of consolidation, last time it was all May until mid June as highlighted, enough to desperate both bulls and bears.
Yesterday we studied the gap that may act as a magnet, also the volume shelf that is supporting price symmetrically. Today let's study the Money Flow Index:
The Money Flow Index (MFI) is a technical indicator that measures the strength and weakness of buying and selling pressure over a specific period. It is based on the assumption that money flow, rather than just price action, is a more accurate indicator of market trends.
A MFI reading above 80 is generally considered overbought, suggesting that there may be a potential for a price correction. A reading below 20 is generally considered oversold, suggesting that there may be a potential for a price rebound. The reading yesterday reached 22.9, the lowest since February 2024.
Price can continue moving down, everything is possible in the stock market, but risk/reward favors bulls.
A very big miss tomorrow has to happen to send this further down. Tesla has challenges, but many bad news are priced in.
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