Shares of SoFi Technologies (SOFI) traded more than 3% higher on Thursday as investors react to better-than-expected holiday sales reports.
According to Mastercard, consumers spent 3.8% more than they did last year for the holidays. The number was better than the 3.2% estimate that analysts and economists had target earlier this year.
SoFi benefits from better consumer confidence and spending trends as the company’s lending and other services benefit from improved consumer confidence.
SoFi shares have spent the last month trading in a wide range as many economists have been changing their outlook for 2025 to include another round of inflationary pressures that would work against consumers.
The stock has traded with highs of $17 and lows of $15 since the beginning of December. Shares are now approaching the $17 with building bullish momentum preparing to help the stock break through the high price of this range.
SoFi’s 50-day moving average – which is in a bullish trend – is approaching the $14 level. Over the next ten days, this key technical trendline will begin to pressure shares. Higher.
In addition, the stock’s 20-day moving average – currently at $16 and acting as support – is preparing to push higher again. The shorter-term 20-day moving average will help to nudge SoFi above the $17 technical barrier.
Investors may expect a “buy the rumor” rally on SoFi’s shares with the company’s earnings slated for early February.
Such a rally would likely the $18-19 range given the company’s positive report last quarter.
Shares of SoFi Technologies maintain a long-term bullish outlook with a price target of $22.50.
