In his first Executive Decision segment on Wednesday’s “Mad Money” show, the host Jim Cramer spoke with Anthony Noto, CEO of SoFi Technologies (SOFI), the online lender on Wednesday after receiving regulatory approval to become a national bank.

Noto said he became very emotional after learning from the Federal Reserve that SoFi’s bank application had been approved. He said SoFi’s mission is to be a trusted partner in helping customers achieve their financial milestones, and now with the ability to offer checking and savings accounts, SoFi can offer new services as well as the possibility of reducing costs. With bank approval, SoFi will also be able to offer products in all 50 states.

Let’s look at SOFI’s charts and indicators.

In this daily bar chart from SOFI, below, we can see a downward trend over the past 12 months interrupted by a number of impressive but short-lived rallies. Prices are trading below the descending 50-day moving average line and the bearish 200-day line. Trading volume has increased since late June, but this has not translated into sustained growth. The On-Balance-Volume (OBV) line showed improvement from August to November, but has since dropped to a new low, telling us that SOFI sellers are more aggressive. The MACD (Moving Average Convergence Divergence) oscillator is bearish.

In this weekly Japanese candlestick chart from SOFI, below, we can see three failed rallies. Each attempt to rise failed at a lower high and each decline made a lower low. The slope of the 40-week moving average line is negative. The OBV weekly line is bearish and so is the MACD oscillator.

In this daily point and pattern chart from SOFI, below, we can see that the software is projecting a potential downward price target in the $5 area.

Basic strategy: SOFI may attract more customers across the United States, but the charts are not favorable at this time. SOFI may not drop to $5, but it needs to establish a base pattern before it becomes attractive to technically oriented traders. To avoid.

Receive an email alert each time I write an article for Real Money. Click “+Follow” next to my signature for this article.