Genetic Technologies Ltd (GTG.AX) shares have seen the Money Flow Indicator drop below 30, potentially spelling a near-term reversal if it crosses below the 20 line. The Money Flow Indicator is a unique indicator that combines momentum and volume with an RSI formula. Because of its incorporation of volume, the MFI is better suited to identify potential reversals using both overbought/oversold levels and bullish/bearish divergences. As with all indicators, the MFI should not be used by itself. A pure momentum oscillator, such as RSI, or pattern analysis can be combined with the MFI to increase signal accuracy.
The MFI was created by Gene Quong and Avrum Soudack and they believed a reading above 70-80 would signify Overbought territory where a reading below 20-10 would indicate that the conditions were indicative of an Oversold price level.
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When undertaking stock analysis, investors and traders may choose to view multiple technical levels in addition to the MFI. Genetic Technologies Ltd (GTG.AX) currently has a 14-day Commodity Channel Index (CCI) of -91.50.