Where Could SoFi Shares Be Headed In The Coming Weeks After Analyst Upgrade?

SoFi Technologies Inc. SOFI shares are trading higher Wednesday after Jefferies initiates coverage on the stock with a Buy rating and a price target of $25.

SoFi Technologies was up 8.11% at $16.40 at publication time.

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

SoFi Technologies Daily Chart Analysis

• The stock looks to be trading in what technical traders call a descending triangle pattern, where lower highs fall toward a support level.
• The $14 level has been able to hold as support in the past multiple times and recently saw a bounce off of the level. Lowering highs have acted as a resistance level for the stock for a time and may continue to hold in the future.
• The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may hold as a place of support, while the 200-day moving average may act as resistance.
• The Relative Strength Index (RSI) has been moving higher the past few days and now sits at 59. The RSI moving higher shows that the stock has seen more buying pressure than selling pressure in the past couple of days.

What’s Next For SoFi Technologies?

Bullish traders want to see the stock form higher lows and start working its way up to pattern resistance. Eventually, bulls want a breakout over resistance and a push higher followed by a period of consolidation, before another leg higher may happen.

Bearish traders are hoping to see the stock continue to trade within the pattern before dropping out of the bottom of the pattern below support. If support can begin to hold as resistance the stock could see a further push lower.