SoFi's Surge: Unveiling 2023 and What Lies Ahead in 2024

Technical Analysis Overview

• Current Price: $10.34, a 3.77% increase.
  
• Weekly Trend: Showing a positive trend with a 5.35% increase over the last five days.
  
• 1-Month Trend: A significant increase of 51.96%, indicating strong bullish sentiment.
  
• 6-Month and Yearly Trends: A 17.04% increase over the last six months and a 124.51% increase year to date, highlighting a robust bullish trend.
  

Advanced Technical Indicators

• Relative Strength Index (RSI): 70.41 - Indicating that SOFI is nearing overbought territory, which could lead to a potential reversal or consolidation in the short term.
  
• Moving Average Convergence Divergence (MACD): 0.63 - Suggesting bullish momentum, indicating a strong buying trend.
  

  Other Indicators: STOCH (83.28), STOCHRSI (84.02), ADX (37.09), Williams %R (-8.57), CCI (104.63), ATR (0.46), Ultimate Oscillator (54.76), and ROC (24.66) all contribute to a picture of current bullish momentum but with potential for short-term volatility or pullback.

Market Sentiment and External Factors

• Market Capitalization: $9.904B USD.
  
• Trading Volume Analysis: A high trading volume of 35,199,288, suggesting active market participation and interest in the stock.
  

Recent News Coverage Impacting SOFI

• Bullish Outlook for 2024: Analysts predict SOFI stock could continue its rally in the new year, benefiting from expected interest-rate cuts. A notable analyst has set a high price target of $14 for SOFI stock, implying significant upside potential (InvestorPlace).
  
  
• Focus on Non-Lending Businesses: Analysts appreciate SoFi's shift towards non-lending businesses, improving earnings quality despite a higher-for-longer interest-rate policy.
  
  
• Central Bank Policy Changes: Potential interest rate cuts in 2024 could benefit SoFi's lending business, as lower rates tend to spur borrowing and lending activity.
  

Conclusion

1. SOFI's stock shows strong bullish signs in the medium to long term, but the current overbought condition warrants caution for short-term traders.
   
   
2. The recent news and analyst predictions provide a positive outlook for 2024, making SOFI an interesting stock for both traders and long-term investors.
   

Comment:

We are following the head & shoulders patterns drawn out on the chart. No surprises. Student loan payments are going to forecast even greater earnings for SoFi in the future. This pattern makes sense to invest in based strategically upon resumption of Student Loan payments. The belief is that there is additional projected income that SoFi could not account for due to the "Student Loan Forgiveness" period. This will heavily contribute to their profitability in the upcoming quarters.

(see) Resumption of Federal Student Loan Payments (U.S)
ncua.gov/regulation-...tudent-loan-payments

Comment:

Watching closely. SoFi has touched the bottom trend line for the head & shoulder. 👀

Comment:

SoFi is being shorted very hard. You can see the Longs vs Shorts

Personally, here is not a bad spot to consider an option or two, they're cheap.
I think the short pressure is holding back SoFi from making a proper leap to $10-15 a share.

I think we are going to see a trend reversal soon if the Shorts lighten up.

If I see any changes in Long vs Shorts I will update.