My Watchlist [120]: AFRM... (Affirm)ative!
Hi everyone. Today I’ll be updating my TA on a major BNPL player:
Affirm Holdings, Inc. (NASDAQ: AFRM)
AFRM is currently trading in a large ascending channel pattern from lows. Bullish divergence is showing up on Stochastic RSI as the stock heads back towards the channel supporting trendline.
On the daily chart, we can see that AFRM is trading in a shorter-term falling wedge pattern into lows. It is currently forming a bullish divergence on RSI while setting up a bullish crossover on the Stochastic RSI. It is also sitting on the May’23 support trendline as mentioned earlier.
A breakout of the falling wedge should see a measured move towards 75.44 by next year, while a breakdown or continued move lower should lead to a retest of 27.05 and lower. If the ascending channel breaks down, AFRM is most likely headed back towards new lows, with eyes on the 23.20-24.59 and 17.86-19.57 bullish island gaps as areas where it could catch a bid.
In my last newsletter on AFRM, I was bullish on it. However, it continued to consolidate for a good few months. In this newsletter, I reiterate my BUY sentiment on AFRM, with technicals suggesting better risk-to-reward for bulls relative to bears.
Sentiment: BUY (Unchanged)
Summary (with Price Targets - NFA):
Trading in a longer-term ascending channel and a shorter-term falling wedge consolidation pattern
Breakout of the falling wedge should see a longer-term move towards 75.44, while a breakdown of the falling wedge and ascending channel will most likely lead to a move towards the 23.20-24.59 and 17.86-19.57 bullish island gaps
All right, that’s all for this newsletter. Till next time!
$Affirm Holdings, Inc.(AFRM)$ $PayPal(PYPL)$ $SoFi Technologies Inc.(SOFI)$ $Apple(AAPL)$ $Visa(V)$
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