SoFi Technologies (SOFI) got a nod from Jim Cramer during Thursday night's "Lightning Round" segment of Mad Money.
Let's check out the charts of this financial services company for a strategy.
In this daily bar chart of SOFI, below, we can see that prices have been finding buying interest (support) around $14. Dips to the $14 area can be seen in March, May and August. Prices have risen since the August low and now trade above the rising 50-day moving average line. The 200-day moving average line does not have a lot of history but it too has a positive slope. A close above $18 will put SOFI above the 200-day line.
The trading volume has been very active since early July and the On-Balance-Volume (OBV) line shows gains from August. A rising OBV line tells us that buyers of SOFI are being more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and tells us that the trend strength is positive.
In this weekly Japanese candlestick chart of SOFI, below, we see a mixed picture. The candles, like the bar chart, show us support around $14. A close above $18 puts prices above the 40-week moving average line.
The weekly OBV line is pointed down and the MACD oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of SOFI, below, we can see a potential price target in the $25 area.
Bottom line strategy: Traders could probe the long side of SOFI around $16 risking a close below $14. Consider buying more SOFI above $18. The $25 area is our initial price objective.
