SOFI stock price has been on a downtrend for the past three months, as it faced resistance from the higher levels and formed lower lows. This shows that the bears have been in control and the stock has lost its momentum. The stock has also broken below the key moving averages, which indicates further weakness.
The stock has created a bearish pattern and erased the gains it made in the previous months. SOFI stock has returned to its previous breakout level, which could act as a support. The technical analysis suggests that the stock is oversold and could bounce back from the lower levels. However, the stock needs to show some signs of strength and reversal before confirming a pullback rally.
SOFI stock price is in a correction phase but trading near to crucial support of $7.00. If formed, a bearish candle indicates sellers are active and will try their best to downside the stock. Sofi Technologies’ stock price closed the previous session at $7.38 with an intraday rise of 1.65%. If the buyers succeed in defending the current support then the possibility of a bounce back will increase. However, if the sell-off continues and SOFI stock drops below lower levels more downfall is possible.
Buyers tried multiple times to break the higher range and expand upward. However, due to the strong presence of sellers, prices faced rejection. It shows sellers are still active on higher levels.
Technical Analysis of SOFI Stock Price in 1-D Timeframe
SOFI price is trading below the downward-sloping 50-day and 200-day EMA showcasing a downtrend. The MACD generated a negative crossover and the histogram is also red indicating bearishness. The current value of RSI is 39.08 points. The 14 SMA is above the median line at 46.90 points, indicating that the SOFI stock is bearish.
Weekly-Time Horizon Analysis
SOFI stock has shown sellers’ strength on the weekly charts. Moreover, the price traded below the key EMAs, which shows further weakness in the stock. The RSI curve is near the oversold region at 46, and a negative outlook was noted, indicating bearishness in the stock. The MACD indicator also persisted to form red bars, and a bearish crossover was noted, which signals corrective moves.
Summary
SOFI stock technical oscillators also support the bearish trend. The MACD, RSI, and EMA are emphasizing negative signs and imply that the downtrend may continue in the Sofi Technologies stock price. SOFI Price action suggests that the investors and traders are bearish on the 1-D time frame. The price action reflects a bearish perspective at the moment.
Technical Levels
Support Levels: $7.00 and $6.00.
Resistance levels: $7.64 and $8.13.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your own research before making any financial decisions.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/25/sofi-stock-sofi-technologies-inc-stock-turn-bearish-what-next/