You Ask, We Analyze: SoFi Technologies Stock Forms A Trend

On Thursday evening, Benzinga asked its followers on Twitter to name a stock we should buy at the open on Friday. From the replies, Benzinga selected one ticker for technical analysis. @SerranoReyMiami, @TradeNomadic, and @danieljfers believe SoFi Technologies, Inc SOFI is a good buy.

The traders may like SoFi for its short squeeze potential. SoFi has a float of 614.66 million shares with high ownership levels. 51.45% of the stock’s available shares are locked up with insiders owning 26.15% and institutions 25.30%. Although SoFi has just 3.4% (21.06 million) of its float held short, that number has increased from 13.73 million in August.

See Also: 15 Stocks Moving in Friday’s Pre-Market Session

The SoFi Chart: SoFi reached a June 2 high of $24.95 before falling into a downtrend that brought it to the $13.56 level on Aug. 17. The stock then reversed course and entered into an uptrend making consistently higher highs and higher lows.

SoFi put in its most recent high low on Tuesday at the $14.38 mark and traded higher Thursday and Friday. For SoFi to continue its uptrend, the stock will need to make a higher high above the Sept. 7 high of $16.13.

There is a gap on SoFi’s chart between $16.19 and $16.53. Gaps on charts fill about 90% of the time, so it's likely SoFi’s stock will trade up into the range in the future.

On Thursday SoFi had higher than average volume with 24.12 million shares changing hands compared to the average 10-day trading volume of 22.03. When volume is higher than average, it indicates there's a higher-than-average level of interest on the stock.

SoFi is trading slightly above the eight-day and 21-day exponential moving averages (EMAs) and recent bullish price action has caused the eight-day EMA to cross above the 21-day, both of which are bullish indicators. SoFi’s stock was also able to regain the 50-day simple moving average as support on Thursday which indicates longer-term sentiment is now bullish.

• Bulls want to see sustained bullish volume push SoFi up to make a higher high. The stock has resistance above at $16.50 and $17.87.
• Bears want to see big bearish volume push SoFi’s stock back down below the moving averages and toward the $14.87 mark. If the stock loses the areas as support it could fall back toward $13.56.