Financial services provider and Stocks Under $10 portfolio name SoFi Technologies ( SOFI) was trading sharply higher Monday after the company reported a Q2 revenue beat as their loan originations climbed and the company boosted their guidance.
In my June 13 review of SOFI I wrote that "I gave SOFI a $9 price target in my November 1 review. Now the charts point to a price target in the $17-$18 area." Let's go back to the charts.
In this updated daily bar chart of SOFI, below, I can see that prices gapped higher Monday and made a new high for the move up. SOFI trades above the rising 50-day moving average line and above the rising 200-day moving average line. Trading volume has been more active since early May and tells me that investors are showing more interest in this name.
The On-Balance-Volume (OBV) line shows strength since May as buyers of SOFI have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is turning upwards again to a fresh outright buy signal.
In this weekly Japanese candlestick chart of SOFI, below, we have to imagine today's gains but we can see that the price action is emerging from a base pattern. Prices trade above the rising 40-week moving average line. The weekly OBV line is strong and rising and confirms the price gains. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of SOFI, below, I can see today's rally with no price gap. Here the software suggests a price target in the $16 area.
In this second Point and Figure chart of SOFI, below, I used weekly price data. Here the software suggests a target in the $21 area.
Bottom line strategy: Traders who are long from my prior recommendations should continue to hold. Risk to $8.90 now. $16 and then $21 are my price targets.
(SoFi Technologies is a holding in TheStreet's Stocks Under $10 portfolio. Click here to learn more about this portfolio, trading ideas and market commentary product.)
