SoFi Stock Leaps Higher, Nears Resistance

Sofi Technologies Inc. SOFI shares were trading higher Thursday after shares of several banks and financial services companies gained following better-than-expected U.S. jobless claims data, which has lifted recovery sentiment. The stock saw a large jump after being able to bounce off the support level.

Sofi Technologies was up 10.33% at $15.96 ahead of the close. 

See Related: Why Jim Cramer Likes Illumina, SoFi And More

Sofi Technologies Daily Chart Analysis

• Shares saw a large bounce in what traders call a descending triangle pattern. The stock is nearing the end of the pattern and if the stock can break above resistance or below support it may continue to push in the same direction.
• The $14 price level is an area the stock has been able to hold as support in the past and may continue to in the future. The lower high trendline has been an area where the stock has found resistance in the past.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bearish sentiment. Each of these moving averages may hold as a potential area of resistance in the future.
• The Relative Strength Index (RSI) has been climbing the past few weeks and now sits at 51. This shows that the stock is seeing an increased amount of buyers and now buying pressure outweighs the selling pressure.

What’s Next For Sofi Technologies?

The stock trades in the descending triangle pattern, which is typically known as a bearish pattern, but if the stock is able to cross above the resistance level it could see a trend change and start a new bullish trend. Bulls are looking to see the price cross above the resistance level and consolidate for a time for the stock to possibly see a further bullish push.

Bears are looking for the stock to continue to trade in the pattern and for the price to fall below the $14 price level for a potential further bearish move.