SoFi (SOFI) Surges 6.63% as Two-Day Rally Hits 11.84% on Bullish Candlestick Patterns, Key Support Levels

SoFi Technologies (SOFI) has surged 6.63% in the most recent session, marking a two-day rally of 11.84%. This sharp move suggests strong short-term buying momentum, potentially driven by bullish candlestick patterns such as a bullish engulfing or a morning star. Key support levels are evident around $25.79 (January 2nd low) and $26.18 (December 31st close), while resistance appears at $27.505 (January 2nd high) and $29.86 (January 5th high). The price action indicates a potential breakout above the recent consolidation range, with the 200-day moving average likely serving as a critical psychological barrier.
Candlestick Theory
The recent two-day rally forms a bullish engulfing pattern, with the second day’s body entirely covering the prior bearish candle. This pattern suggests a reversal from a downtrend to an uptrend. Additionally, the price has tested the $26.18 support level twice (December 31 and January 2), which could now act as a dynamic support if it holds. A breakdown below this level might trigger a retest of the $25.79 pivot, while a sustained close above $29.28 (January 5th close) could confirm a shift in sentiment.
Moving Average Theory
The 50-day and 200-day moving averages are critical for trend assessment. If the 50-day MA is above the 200-day MA (a "golden cross"), it would reinforce a bullish bias. However, given the recent volatility, the 200-day MA may still be acting as resistance. A close above $29.28 could signal that the 50-day MA is gaining control, while a failure to hold above the 100-day MA might indicate a pullback toward the 200-day MA for confluence with Fibonacci levels.
MACD & KDJ Indicators
The MACD histogram is expanding positively, reflecting increasing bullish momentum. A crossover of the MACD line above the signal line would confirm a short-term uptrend. The KDJ (Stochastic) oscillator shows the %K line nearing overbought territory (80+), suggesting a potential pullback. However, the %D line remains in neutral territory, indicating the overbought condition may not yet be a sell signal. Divergence between the KDJ and price action could warn of a reversal if the %K line fails to make higher highs.
Bollinger Bands
Volatility has expanded as the price approaches the upper Bollinger Band, with the current close at $29.28 near the band’s upper boundary. This suggests a potential mean reversion or continuation, depending on whether the band is breached. A break above the upper band may signal a continuation of the rally, while a reversion toward the mid-band ($28.00–$28.50) could indicate consolidation.
Volume-Price Relationship
Trading volume has surged on the recent rally, with the most recent session’s volume (73.68 million shares) exceeding the 30-day average. This validates the strength of the price move. However, if volume declines while the price remains elevated, it could signal weakening conviction. The volume profile also highlights a key inflection point around $27.00–$27.50, where previous volume spikes coincided with price reversals.
Relative Strength Index (RSI)
The 14-day RSI is likely in overbought territory (>70), given the two-day 11.84% surge. While this is a cautionary signal, it’s not uncommon for strong trends to remain overbought for extended periods. A divergence between RSI and price action—such as RSI forming lower highs while the price makes higher highs—would increase the probability of a near-term correction. However, a sustained close above $29.28 could push RSI into a more neutral range, validating the uptrend.
Fibonacci Retracement
Key Fibonacci levels from the recent high of $29.86 (January 5th) to the subsequent low of $25.79 (January 2nd) include 38.2% at $28.15 and 50% at $27.83. The current price of $29.28 is near the 61.8% retracement level ($27.50), suggesting a potential target for a pullback. A retest of the 50% level could confirm its role as dynamic support, while a breakdown below $27.50 might trigger a test of the 61.8% level.
Confluence and Divergences
The strongest confluence exists at the $27.50–$28.00 range, where the 50-day MA, 61.8% Fibonacci retracement, and prior support/resistance levels overlap. A bullish breakout above $29.28 with expanding volume and a MACD crossover would create a high-probability trade setup. Conversely, a breakdown below $27.50 with declining volume and bearish KDJ divergence could trigger a sell-off toward $25.79.

Probabilistic Summary
The current rally suggests a high probability of continued bullish momentum in the short term, supported by strong volume and confluence at key technical levels. However, overbought conditions and potential KDJ divergence imply a cautionary stance for new long positions. Traders should monitor the 200-day MA as a critical trend filter and watch for divergences in momentum indicators to time entries or exits.