Financial services company SoFi Technologies Inc. ( SOFI) -- a longtime Stocks Under $10 portfolio holding -- gapped higher Tuesday, as traders reacted to the fintech company beating on its third-quarter numbers. Let's check out the charts and indicators.
In this daily bar chart of SOFI, below, we can see that prices gapped higher on Tuesday's opening, but have quickly retreated from their best level. Prices are in a no-man's land between the 200-day moving average and the 50-day moving average line. The trading volume is heavy so far Tuesday and could mean a weak close based on profit taking from short-term traders who bought in the past few weeks.
The On-Balance-Volume (OBV) line shows some minor improvement and the Moving Average Convergence Divergence (MACD) oscillator is just at the underside of the zero-line. A crossover and buy signal could happen soon if prices continue to rise.
In this weekly Japanese candlestick chart of SOFI, below, we can see that prices are in a longer-term decline as they remain below the declining 40-week moving average line. The candles show a number of small real bodies but into bottom-reversal patterns. The OBV line has moved lower the past two years. The MACD oscillator is bearish.
In this daily Point and Figure chart of SOFI, below, we can see that prices have reached an upside price target in the $6.35 area.
In this weekly Point and Figure chart of SOFI, below, we see a price target in the $9 area.
Bottom line strategy: SOFI has been trading sideways since May and today's rally improves the picture and opens the way to a rally to the $9 area. Only nimble traders need apply.
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