SoFi's Stock Takes A Dip But Still Trades Within Technical Pattern

SoFi Technologies Inc. SOFI shares are trading lower Friday after a recent SEC Filing shows the notice of effectiveness for the conclusion of the lock-up period. The lock-up is set to expire on Monday, June 28 for 5+% shareholders and certain executives. This lock-up doesn't apply to PIPE investors.

SoFi Technologies was down 8.22% at $19.16 at last check. Below is a technical look at the stock.

SoFi Technologies Daily Chart Analysis

• Shares are forming into what technical traders would call a pennant pattern. The price has been getting condensed between narrowing highs and lows for the past few months.
• The stock is trading above the 50-day moving average (green), indicating sentiment in the stock is likely bullish. The stock may find support near this moving average in the future.
• The stock saw a nice correction Friday, moving the Relative Strength Index (RSI) back below 50, meaning there are now more sellers in the stock than buyers.

Key SoFi Technologies Levels To Watch

• The pennant pattern has been forming since early 2021 and could come to an end within the next few weeks.
• The price will likely continue to be condensed between narrowing highs and lows until the stock is able to break above the pattern support or resistance and possibly see a strong move in the same direction.
• The RSI has been cooling off throughout last week as the stock was rejected by resistance and started heading lower. Now, as the stock nears pattern to support, the stock has more sellers than buyers.

What’s Next For SoFi Technologies?

Bullish technical traders would like to see the stock bounce off of pattern support and continue to trade in the pennant pattern. If the stock can bounce off of pattern support, bulls would like to see the stock gain some ground on the RSI. Eventually, bulls want to see a nice breakout of the pennant pattern with a nice bullish move above pattern resistance.

Bearish technical traders would like to see the stock fall to the bottom of the pennant pattern before breaking below the pattern support. A break through the bottom of pattern support may be followed with a large bearish move. Bears would like to see the RSI continue to hold below 50 and keep more sellers than buyers in the stock.