Stock Of The Day: Where Will SoFi Turn?

Trading in SoFi Technologies, Inc. (NASDAQ:SOFI) is quiet on Thursday. The shares are consolidating after a long and painful downtrend.

• What are SOFI shares currently doing?

But they may be getting close to an important price level that could provide support. This is why SoFi is the Stock of the Day.

As you can see on the chart, in January 2025, SoFi was in an uptrend. There were more shares to be bought than there were to be sold. Buyers had no choice but to outbid each other if they wanted to draw sellers into the market.

This price action forced the shares into an uptrend.

But when the stock reached $18.25, the tide turned. There were enough shares for sale to fill all of the buy orders. The price stopped moving higher.

After the shares reversed and traded lower, many of the people who sold were glad they did. They thought they made a good decision.

But in June, the resistance broke, and the price went higher. When this happened, some of these formerly happy traders changed their minds. They came to think their decision to sell was actually a mistake.

A number of them vowed to buy their shares back. But they also decided that they wouldn't pay more than their selling price.

This means if SoFi reaches the $18.25 level, there will be remorseful or regretful sellers placing buy orders. If there is a large quantity of these orders, it could create support at the level. This might put a floor under the price.

If this support doesn't break, some of the buyers who created it may become impatient and anxious. They will worry that sellers will go to other buyers if they are willing to pay more.

As a result, these anxious buyers increase their bid prices. If other anxious buyers see this and do the same, it could result in a bidding war that forces SoFi higher.

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