$Tesla (TSLA.US)$ MACD: Remains negative with DIF at -0.443 ...

Warren E Buffett : RSI on the 1hr, 4hr, and Daily, has a lot more room fall

Warren E Buffett : Actually, just did a little bit deeper of old, severely overbought, sideways are lower, nowhere, even close to being oversold

fantabulous OP Warren E Buffett : While it’s true that the RSI on the shorter time frames (like 1hr and 4hr) may have more room to fall, the current daily RSI nearing oversold levels (around 28.1) is already a signal that we’re in a potential reversal zone. A low RSI on the daily chart often indicates that the selling pressure may be overextended, especially if it aligns with other indicators like MACD showing bearish momentum easing up. Shorter time frames can provide insight into intraday moves, but daily RSI is a stronger signal for potential larger trend reversals.

fantabulous OP Warren E Buffett : While I understand your view, the current daily RSI around 28.1 suggests it’s nearing oversold territory by standard technical analysis criteria, typically seen below 30. This oversold level often indicates that selling pressure may be overextended. Even if prior movements showed overbought conditions, current indicators like the MACD and RSI point toward a shift in momentum, hinting at a potential reversal or at least a pause in the downtrend. Sideways movements can occur at oversold levels, but they also frequently set up for a bounce if buyers see value.

Warren E Buffett fantabulous OP : But RSI on the daily is in the 60s, over territory, MACD also peeking, indicating at all the polish activity has peaked. KDJ also flipped

Warren E Buffett fantabulous OP : Yeah man, just double check, I’m not sure where you are grabbing your daily RSI from, definitely not 28.1

Warren E Buffett fantabulous OP : If anything, MACD, KDJ, and RSI, signaling short term reversal, but longer downtrend  

fantabulous OP Warren E Buffett : Actually, to clarify the latest daily RSI for Tesla is around 55.32, which places it in neutral territory, not in the 60s or overbought range as suggested. A neutral RSI indicates balanced buying and selling pressure without signaling any strong trend exhaustion. Additionally, while MACD might show a peaking trend, it doesn’t necessarily imply an imminent reversal; rather, it suggests a slowing of bullish momentum. As for KDJ, it’s one of many indicators and should ideally be considered alongside others like RSI and MACD for a fuller picture. Based on the current RSI level, Tesla isn’t close to overbought or oversold, so the market could still see steady movement without extreme reversals.

fantabulous OP Warren E Buffett : While I appreciate your perspective, it’s important to base our analysis on the actual data. The current daily RSI for Tesla stands at 55.32, placing it in a neutral zone rather than in oversold or overbought territory. An RSI in the mid-50s typically signals equilibrium between buyers and sellers, not an indication of either an imminent reversal or a strong downtrend continuation. MACD and KDJ can show momentum shifts, but without RSI being in an extreme range, these indicators alone don’t imply a significant directional bias. It would be more meaningful to monitor further developments, such as volume changes or a shift in RSI, to confirm any stronger trend direction. Relying solely on partial indicators can lead to misleading conclusions, so a well-rounded approach here gives a clearer picture.