SoFi Stock Surges 13.10% In Four Days As Volume Hits Three Month High

SoFi Technologies(SOFI) rose 3.69% in the most recent trading session, marking its fourth consecutive daily gain and bringing the cumulative four-day advance to 13.10%. This bullish momentum culminates with the stock closing at $19.95 after testing the $20.89 resistance level, reflecting heightened investor optimism driven by significant volume expansion.
Candlestick Theory
Recent candlestick patterns reveal strong bullish conviction. The four-day rally includes three white soldiers formation with higher highs and higher lows, culminating in yesterday's long white candle closing near the session peak. This surge occurred after a consolidation phase near $18.00, which now establishes robust support. Critical resistance manifests at the July 8 intraday high of $20.89, aligning with the psychological $20 threshold. A sustained breach above $20.90 may validate continuation momentum, while failure could see retracement toward the $18.40-$18.60 support zone.
Moving Average Theory
The moving average configuration signals a strengthening uptrend. Short-term momentum is evidenced by the price trading significantly above the 50-day SMA ($15.80) and 100-day SMA ($13.60). The 200-day SMA ($11.90) maintains a positive slope, confirming the primary bull trend. Notably, the 50-day SMA crossed above the 200-day SMA (Golden Cross) in late June, reinforcing structural strength. Current price positioning above all three key averages – with the 50-day leading – suggests near-term bullish dominance, though extended deviations warn of potential pullback risks.
MACD & KDJ Indicators
MACD shows sustained bullish momentum with the MACD line (0.75) above the signal line (0.65) and both trending upward in positive territory, suggesting accelerating upside potential. However, KDJ enters overbought territory with the %K line (87) crossing above %D (83) near the 90 threshold. While confirming immediate bullish strength, this KDJ extremity signals overheating. The MACD's positive divergence during June's consolidation enhances reliability in the current signal, though traders should monitor for bearish crossovers given overextended conditions.
Bollinger Bands
Bollinger Bands exhibit volatility expansion with price pressing the upper band ($20.30), reflecting strong directional momentum. The bands widened significantly during the rally after contracting through late June, indicating a volatility breakout. Current proximity to the upper band suggests near-term exhaustion potential, but band expansion supports trend continuation if volume persists. Key support resides at the 20-day moving average ($18.50), now serving as the band midline.
Volume-Price Relationship
Volume dynamics validate the recent advance. Trading activity surged 38% above average during the rally, culminating in Tuesday's 111 million shares traded – the highest in three months. This climactic volume, combined with consecutive closes near session highs, confirms accumulation. The volume profile shows consistent expansion on up days versus contraction during pullbacks, indicating sustainable demand.
Relative Strength Index (RSI)
The 14-day RSI at 78 exceeds the overbought threshold (70), reflecting robust upward momentum but also warning of exhaustion risks. Historically, similar RSI peaks in April and January preceded short-term pullbacks. While momentum may persist into extreme overbought territory (RSI >80), this reading warrants caution for contrarian reversals. The indicator's warning nature necessitates confirmation from other tools, though its alignment with volume-backed price strength reduces false signal probability.
Fibonacci Retracement
Applying Fibonacci retracement to the 2024-2025 rally from $6.32 (August 2024 low) to $20.89 (current high) reveals key levels. The 23.6% retracement at $18.25 coincides with recent consolidation support. Confluence emerges at the 38.2% level ($16.80), aligning with the 50-day SMA and June's swing low. Below this, the 50% retracement ($15.60) offers major support near the 200-day SMA. Current price holding above the 23.6% level reinforces bullish continuation potential.
Confluence and Divergence Observations
Strong confluence exists between the $18.25 Fibonacci level, candlestick support, and Bollinger Band midline, making this zone critical for trend validation. MACD/volume alignment confirms bullish momentum, while KDJ/RSI overbought extremes diverge from price action, suggesting short-term consolidation risks. However, no bearish divergence is evident in oscillator peaks, and the Golden Cross/volume expansion underpins intermediate bullishness. The Fibonacci resistance at $20.89 represents the immediate make-or-break level, with sustained breach potentially triggering momentum targeting the 127.2% extension near $23.00.