Introduction
SoFi Technologies (SOFI) stock has been on the radar of many investors, given its impressive year-to-date performance of 66%. The question on everyone's mind is whether this financial technology company is turning a new leaf. To answer that, let's dive deep into both the technical and fundamental aspects of SOFI to determine whether it's a buy or sell opportunity.
Technical Analysis
In the world of technical analysis, we often seek insights from various indicators and signals. The Free Intrendias Terminal recently flashed a buy signal for SOFI as of November 1st. However, the Buy Sell signals algorithm has lagged behind the performance of SOFI for those who have simply bought and held the stock. Over the past three years, the stock has experienced a decline of 38%.
But there's more to the story. Intrendias provides machine learning price forecasting using Linear Regression and GARCH models, which predict bullish moves for SOFI, with a price target of $9.40 within the next 90 days. Additionally, a machine learning XGBoost model forecasts a SOFI stock price of $7 in the next seven days.
We've seen RSI divergence patterns twice in SOFI's recent history. A bearish divergence during the summer months led to a 36% slide, while a more recent bullish divergence in October resulted in a 24% rally. However, the stock had a challenging start to the week, down 6%, seemingly rejecting the trend line.