20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
SoFi Technologies, Inc (NASDAQ:SOFI) was trading lower Friday afternoon after suffering a high amount of volatility earlier in the trading session, which was triggered when the Supreme Court blocked President Joe Biden’s plan to cancel student debt.
The move lower came despite SoFi, which provides student loans, potentially benefitting from the news. Biden responded to the court’s decision by stating that he plans to announce new actions on student loans Friday. Read more here...
SoFi’s rise higher, on June 28 and June 29, caused the stock to negate a downtrend. If the loan provider bounces on Monday, Friday’s low-of-day will confirm a new uptrend pattern.
An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.
The higher highs indicate the bulls are in control, while the intermittent higher lows indicate consolidation periods.
Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.
Rising longer-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The SoFi Chart: When SoFi spiked almost 6% higher on June 28 to reach $9.09, the stock formed a higher high, which negated the downtrend. If SoFi bounces on Monday or on Tuesday, Friday’s $8.32 low-of-day will mark a higher low, which will confirm a new uptrend.
- If SoFi closes the trading day under the $8.80 mark, the stock will print a doji or inverted hammer candlestick, which could indicate higher prices will come on Monday. The second most likely scenario is that the stock forms an inside bar to consolidate the recent volatility.
- SoFi’s eight-day exponential moving average (EMA) is trading above the 21-day EMA, which is bullish. The stock’s 50-day simple moving average (SMA) is also trading above the 200-day, which indicates SoFi is experiencing a longer-term bull cycle.
- SoFi has resistance above at $9.63 and $10.57 and support below at $8.24 and $7.15.
Photo via Shutterstock.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!