SoFi Technologies Surges 19.31% as Golden Cross and Ascending Channel Signal Strong Bullish Momentum

Candlestick Theory
SoFi Technologies (SOFI) has exhibited a robust bullish momentum, with five consecutive days of gains culminating in a 19.31% rally. Recent candlesticks show a series of higher highs and higher lows, forming a potential ascending channel pattern. Key support levels are evident around $25.19 (November 21 close) and $24.91 (November 20 close), while resistance is forming near $32.21 (November 12 high). A notable bearish engulfing pattern appeared on November 20, signaling short-term weakness, but subsequent buying pressure has invalidated this bearish signal. The current price of $29.72 suggests a retest of the 200-day psychological barrier, with a bullish harami pattern emerging near $28.49 (November 26 close) hinting at consolidation before a potential breakout.
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Moving Average Theory
The 50-day moving average (approximately $26.50) has crossed above the 200-day average (around $24.00), forming a golden cross that historically signals a bullish trend. The 100-day average ($25.70) is also being outperformed by the 50-day line, reinforcing short-term strength. However, the 200-day line remains a critical threshold; if SOFI sustains above $29.72, it may confirm a long-term uptrend. The convergence of the 50-day and 200-day averages suggests a potential mean-reversion opportunity if the stock pulls back to the $27.40–$28.40 range, where the 50-day average could act as dynamic support.
MACD & KDJ Indicators
The MACD histogram has turned positive in recent sessions, with the line crossing above the signal line on November 27, suggesting momentum is aligning with the price rally. However, the KDJ indicator shows overbought conditions (K at 85, D at 80), which may caution against immediate short-term continuation. A divergence between the MACD and KDJ—where the MACD remains bullish despite the KDJ approaching overbought levels—indicates a potential exhaustion phase. Traders should monitor a potential bearish crossover in the KDJ (K < D) as a sell signal, though the MACD’s strength may delay a reversal. <br>Bollinger Bands
Volatility has expanded significantly, with the 20-day Bollinger Bands widening from $25–$30 in mid-November to $28–$32 currently. SOFI has recently tested the upper band (now at $30.50), suggesting overbought conditions. A sustained close below the middle band ($29.00) could indicate a contraction phase, while a break above the upper band may trigger a continuation of the rally. The bands’ expansion aligns with the MACD’s bullish momentum, but the price’s proximity to the upper band warrants caution for a potential pullback.
Volume-Price Relationship
Trading volume has spiked during the recent rally, peaking at $786.7 million on November 28, validating the strength of the price action. However, volume has declined slightly in the last two sessions ($786.7 million vs. $162.3 million on November 26), which may signal waning buying pressure. A divergence between rising prices and decreasing volume could foreshadow a correction, but the current volume profile still supports a bullish case if SOFI maintains above $28.45 (November 25 close).
Relative Strength Index (RSI)
The 14-day RSI stands at approximately 68, hovering near overbought territory. While this suggests the stock is overextended, the RSI’s slope remains positive, indicating the uptrend remains intact. A drop below 60 would likely confirm a pullback, but a break above 70 could trigger a parabolic move. Caution is warranted as the RSI has shown early overbought warnings in prior rallies (e.g., November 12 peak at 72), which were followed by sharp corrections.
Fibonacci Retracement
Applying Fibonacci levels to the recent $23.52–$32.57 range (November 21 to October 28), key retracement levels at 38.2% ($28.10) and 61.8% ($26.80) are critical. SOFI is currently testing the 38.2% level, which aligns with the 50-day moving average. A break above $28.45 (November 25 high) would target the 78.6% level at $31.20, while a failure to hold $27.40 could lead to a retest of the 50% retracement level at $28.00.
Conclusion
Confluence is evident in the 50-day/200-day crossover and bullish MACD, but divergences in the KDJ and RSI suggest caution. The stock is overbought but remains within a strong uptrend. Key watchpoints include $29.72 (current price), $28.45 (support), and $30.50 (Bollinger upper band). A breakout above $30.50 with increasing volume may confirm a new bullish phase, while a close below $28.45 could initiate a consolidation or correction.