SoFi Bears Are Heading Into To Crunch Time

Sofi Technologies Inc. SOFI shares are trading higher Wednesday possibly in sympathy with Robinhood Markets Inc. HOOD.

Sofi's stock could be subject to a short squeeze with over 18% of shares held being short. Shares are up 8.3% at $16.37 at publicaiton time.

See Also: 3 Robinhood Sympathy Trades To Watch

Sofi Technologies Daily Chart Analysis

• The stock is trading in what technical traders call a descending triangle pattern, and is hanging near the flat bottom support.
• The stock trades below the 50-day moving average (green), indicating the stock may be facing bearish sentiment
• The stock may find resistance near the 50-day moving average in the future.
• The $15 price level has held as support multiple times in the past and the stock is seeing resistance from the lower high trendline.
• The Relative Strength Index (RSI) has been moving upward recently and now almost nears the 50 mark. The RSI currently sits at 48, meaning there are still slightly more sellers than buyers in the stock.

What’s Next For Sofi Technologies?

Bullish traders are looking to see the stock bounce at support and start heading higher. They would then like to see the stock form higher lows until resistance is broken.

Bearish traders would like to see the stock fall below support and begin to hold the level as resistance. If the stock can hold old support as resistance, it may see a further push down.