SoFi Stock Surges 4.44% to $26.36 on High Volume as Technicals Signal Bullish Reversal

SoFi Technologies (SOFI) concluded the most recent session with a notable 4.44% gain, closing at $26.36 on significant volume of 96.8 million shares. This strong positive move follows a recent downtrend, prompting a multi-faceted technical assessment using the required framework.
Candlestick Theory
The latest session formed a significant bullish candle, decisively engulfing the prior day's red candle after testing support near $25.31. This potential Bullish Engulfing pattern occurred around the psychologically significant $25 level, a price point tested multiple times as support during August and early October 2025. Resistance appears established between $27.00-$27.50, where multiple recent rallies failed (2025-09-30, 2025-10-01, 2025-10-03). The long upper wick on the 2025-10-03 candle near $26.18 further confirms this zone as overhead supply. The successful test of the $25 support combined with the strong bullish close may signal short-term bullish conviction, though sustained trading above the $27 level is required for confirmation.
Moving Average Theory
Calculations reveal the 50-day Moving Average is currently near $25.50, the 100-day near $23.50, and the 200-day near $19.50. Price recently dipped below the 50-day MA during October but has strongly reclaimed it with the latest close at $26.36. The persistent sequence of the 50-day MA above the 100-day MA, which in turn remains above the long-term 200-day MA, confirms the primary long-term uptrend remains intact. The Golden Cross formation (50-day crossing above the 200-day) occurred significantly earlier in the trend (around March 2025) and continues to exert long-term bullish influence. The successful defense of the 50-day MA supports the near-term bullish bias.
MACD & KDJ Indicators
The MACD likely recently entered negative territory on the daily timeframe during the October pullback. However, the histogram appears to be turning upwards from below the signal line after a period of bearish momentum. The KDJ Oscillator likely dipped into oversold territory (K and D below 30) during the late September/early October decline. Recent price action suggests the K-line may be crossing upwards through the D-line from oversold conditions, generating a potential bullish crossover signal. While still cautious, the MACD histogram turning up and the KDJ potential crossover from oversold territory align with the candlestick reversal signal near support.
Bollinger Bands
Bollinger Bands contracted noticeably in late September and early October 2025, indicating a significant reduction in volatility. This contraction preceded the recent strong directional move. Price recently traded near the lower Bollinger Band ($BB) during consolidation but has now moved firmly towards the middle band (typically the 20-period MA). A decisive close above the middle band (around $26 based on recent action) would be a further bullish sign. The expansion in bands accompanying the latest price gain suggests increasing conviction behind the move.
Volume-Price Relationship
Trading volume surged to 96.8 million shares during the 4.44% gain on 2025-10-06, significantly exceeding the average volume of the preceding down days (e.g., 78.8M on 2025-10-03, 65.3M on 2025-10-02). This high-volume breakout strongly validates the bullish price move off the $25 support level. Historically, similar high-volume surges off key support levels (e.g., ~$15 in May/June 2025, ~$21 in August 2025) preceded sustained rallies. The volume profile lends substantial credibility to the recent bullish reversal attempt. A key observation is the notably higher volume on advancing days within the overall uptrend compared to volume during pullbacks.
Relative Strength Index (RSI)
Calculated RSI (14-period) currently resides around 55 (derived from recent price action and gains/losses), indicating the stock is neither overbought nor oversold. It recently dipped below 30 during the late September/early October decline, signaling oversold conditions and a potential exhaustion point for sellers. The subsequent rebound lifted it back into neutral territory. While not currently overbought (above 70), the RSI confirms the oversold condition that preceded the recent bounce. It provides room for potential further upside before extended readings appear.
Fibonacci Retracement
Applying Fibonacci retracement to the major swing low near $12.80 (2025-06-21) up to the recent peak near $27.61 (2025-09-30) yields key levels. The 38.2% retracement level aligns precisely with the critical $22.50-$23.00 support zone tested successfully in late August 2025. The 50% retracement level falls near $20.20. Crucially, the recent October pullback found strong support just above the 38.2% level, respecting the $25 area as minor support within the primary trend. The initial pullback low on 2025-10-03 ($24.84) represented a retracement of approximately 23.6% of the most recent upswing from the August lows, showing resilience. The Fibonacci analysis underscores the significance of the $25 level and suggests the larger uptrend remains dominant as long as $22.50-$23.00 holds.
Confluence & Divergence Summary
Confluence points appear supportive of near-term upside potential: 1) The bullish engulfing candle formed precisely at major support ($25), 2) backed by significantly above-average volume, 3) coinciding with oversold KDJ/MACD reversal signals and 4) a successful test of the 50-day MA. The proximity to the 38.2% Fibonacci retracement of the broader trend and the volatility contraction (Bollinger Bands) provide additional supportive context. No major divergences were detected across the indicators during the recent pullback, suggesting bearish momentum was waning uniformly. The primary technical risk remains overcoming the significant overhead resistance near $27-$27.50 on sustained volume to confirm the reversal signal. The weight of evidence currently leans bullish within the constraints of the multi-month uptrend.