SoFi

The SoFi stock price lost close to 5% yesterday as the sell-off following the expiry of the lock-up period intensifies. But what comes next for SOFI? SoFi Technologies Inc (SOFI: NASDAQ) closed at $18.25, down $0.92 (-4.80%). The week started well for SoFi investors. After opening lower on Monday, the stock rallied 20% on Tuesday. However, the rally soon reversed, and it finished yesterday's session down 13% from Tuesday $20.99 high. Much of the recent weakness can be attributed to the expiration of the lock-up period. Early investors in the SPAC deal were permitted to sell their shares from the 28th of June. Fintech company, Social finance Inc, formerly completed its reverse merger with Chamath Palihapitiya's Social Capital Hedosophia Holdings on June 1st. Despite a 12% rally on the merger completion, the SoFi stock price is now lower by 20% from the 1st of June high. However, there is optimism surrounding Sofi's potential. SCH Founder Palihapitiya said: “As a leader and innovator in the financial technology space, SoFi has the opportunity to completely transform the consumer financial services industry with its digital-first ecosystem of offerings" Furthermore, he was not alone. Rosenblatt Securities analyst Sean Horgan sees the recent weakness as a gift for long term investors: “We see a unique buying opportunity as a result of this recent selling". For the bulls sake, I hope he is correct. SOFI Technical Outlook The daily chart shows tha SoFi has almost tracked back to the $17.65 low of June 28th. This area has been a good level of both support and resistance over the last 6 months. A previous drop to $17.90 in January marked the start of a 60% rally to the $28.26, all-time high. Additionally, a rally in April was reversed at $17.43. Subsequently, SoFi lost 20% in the three weeks that followed. So this is clearly an important area to watch. A decisive break of the support could open the door to a trend line at $15.50. The uptrend in place from December has proven to be a resolute area of support. The price has yet to close a day below this line. Therefore, this should also be considered a major support for the SoFi stock price. Given the current trajectory, it seems likely that at least the first support level will be tested in today's session. However, I may be wrong. If the price can sustain the $17.65 level, it could well turn higher. The best suggestion I can offer is to see how the stock trades in the coming days. Until there is some resolution at the important support, the balance could be tipped in either direction. Don’t miss a beat! Follow us on Telegram and Twitter. SoFi stock price chart (daily) Follow Elliott on Twitter.

SoFi stock price continues June’s decline, starting July with a steep loss