Would You Follow Ark Invest To Go Into SOFI? TA to Find Out!
Ark Invest has purchased 133,191 shares of $SoFi Technologies Inc.(SOFI)$ at the closing price of $9.09 through its Ark Fintech Innovation ETF (ARKF) fund.
Considering that a significant purchase is made amidst a volatile market environment for Ark Invest. I would think there might be some optimistic expectations for the company’s banking business.
There have been reports of some downgrades for SoFi Technologies by some major banks. Hence, I would like to share on what I have discovered after using Technical Analysis to look at how SoFi have been doing recently.
Technical Analysis – Simple Moving Averages (SMA)
SMA has shown that SOFI is in a bull trend but do note that there is a tendency of the trend moving downwards.
The period of SOFI bull trend does not last very long, hope this one will continue after Ark Invest fund new injection of money.
Technical Analysis – Relative Strength Index (RSI)
RSI has shown that SOFI is in a good momentum and it is trending downwards the oversold region.
Oversold normally suggest more Buying activities could be expect, but for now, we might want to monitor how it will trade these few days.
I would monitor how it will be trading today (28 Jul) before I plan to take a position.
Technical Analysis – Average Directional Index (ADX)
ADX is between 20 and 40 which indicate that SOFI is in a developing trend. +DI is above -DI by a wide margin, this suggest a strong bullish strength.
I hope we can see some strong price action from SOFI, pushing the price to a new high today.
Technical Analysis – Parabolic SAR (SAR)
Using Parabolic, we can see that SOFI has went through a bullish reversal near mid-July.
With this new investment from Ark Invest, can we see SOFI continue its upwards bullish trend?
Something we might need to take note is the price is moving close to the dots in a downwards direction, if this continues we might have a potential bearish reversal.
Summary
Based on the different technical indicators, SOFI is in a strong bull trend, but SAR has shown a potential bearish reversal might happen if price trend downwards.
I would monitor today (28 Jul 23) price action for SOFI before I decide if I would like to take a position.
Appreciate if you could share your thoughts in the comment section whether you think this is a good time to enter SOFI or SOFI price would trend a bit downside before we can plan to take a positions.
@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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HAHA still people believe in Kathy??
Good