Sofi - A possible repeating patternA repeating pattern and potential opportunity
All three companies have some form of crypto offering.
NUbank, Coinbase and Sofi appear to have similar bottoming patterns with double bottoms and a head and shoulders style reversal. The charts are not identical but you can clearly see a repeating testing of levels and a price cluster (red shaded area) which appears to be the new base forming offering good enough support for a trade set up. Under the price cluster red shaded area there are double bottoms.
I have been in the NUBank trade since Jan 2023 at $3.51 and I noticed COIN had a similar bottoming pattern in June 2023 but it had not broken out yet, so I shared a comparative chart at the time and took a position in COIN, noting the stop as the bottom of the red box. I have shared individual charts on COIN and NU to this effect also.
Since June COINBASE has had 120% increase and I believe this will continue.
Whilst its price movement since the sharing in June is not identical to NUbank, you can clearly see a parallel channel bottoming, head and shoulders reversal and similar price clusters which i marked up.
I was most confident on the COIN trade when it had its strong pull back from Jul - Oct, here I double the position when it came back and bounced off the the 200 day moving average perfectly.
Two of the great trades of this year from me which I am still currently holding NYSE:NU and $Coin.
I believe there maybe an opportunity for this much smaller company $SOFI. A trade set up is there with a defined stop and good risk to reward (outlined on chart). I have not entered this trade yet, but i may in coming weeks. I will keep you posted.
PUKA
Digitalbanking
SoFi Technologies SoFi Technologies (SOFI)
A great example of how Fibonacci Extension levels align with support & resistance levels.
Confirmations for new entry:
- Break above OBV resistance line
- Retest of 200 day SMA or break & retest of 1.00
fib ext at $8.70.
If already in the trade, congratulations. We are above the 200 SMA and it is upward sloping. It would be nice to see us break and hold above the Aug 2022 highs.
I hope this chart can help you manage the trade and de-risk at specific levels or increase allocation by skimming and reentering at specific levels.
Mastercard a long term opportunityMastercard Inc NYSE:MA
- Historically cycles are between 34 - 40 months
- Now on month 40 of a decline/consolidation cycle
- New cycle into bull phase highly probable
- Above 10 month, 200 week & 200 day SMA
- Recently had lowest oversold RSI level ever!
- Monthly MACD Cross
In addition to the above points, a number of bullish parameters are lining up on the chart.
On the daily and the weekly we breaking out of a parallel channel. We are testing the upper resistance of the parallel channel for the 5th time and appear to be breaking through. Parallel channels have one of thee best records in terms of trading pattern success rates.
The RSI was at its most oversold level ever in Sept 2022 and this may have acted as a spring to help propel price with enough momentum to breach through the overhead resistance.
In summary, the cycles suggest we are about to move into a bull market with the aid of a price spring from significantly oversold levels. We are breaking out of a parallel channel and have the 10 month, 200 week and 200 day SMA's under price as support and they are all sloping upwards.
The parallel channel target provides +41% return (see chart). I have also shown were a 100% return would fall on the chart. If we were to reach the top of the channel within the typical 40 month cycle by Sept 2026 we could see a 200% return in what is a very well entrenched and established stock/company.
NYSE:MA is highly established entity as the 20th largest company in the world by market cap at $372bln. A 2x in market cap would make it a $1 trillion company (how likely this is I don't know). Mastercard pay a very small $0.57 dividend each quarter per share ($2.83 annualized). Its less than a percent in dividend yield but its something else to factor in.
KEY DATE: Earnings report on 27th July 2022 (no negative earnings report since 2020).
