For his third "Executive Decision" segment, Jim Cramer checked in with Max Levchin, co-founder, chairman and CEO of Affirm Holdings (AFRM) , which has been on a roller coaster since reporting earnings earlier this month.
Levchin said that everyone at Affirm believes in their mission of making the world a better place using financial technology.
Companies like Amazon (AMZN) , Shopify (SHOP) and Walmart (WMT) have all chosen to partner with Affirm because of their commitment to their customers and their ability to build great software that scales to meet ever-changing demands.
Cramer said companies like Affirm are turning the financial world upside down by putting consumers first.
Let's see if that has translated into positive-looking charts and indicators.
In this daily bar chart of AFRM, below, we can see that prices are testing the rising 50-day moving average line. We have just enough price history to have the 200-day moving average line and its slope positive. The trading volume was strong in September and October as prices advanced but it has declined in November as prices pushed still higher - this is not what chart readers like to see.
The On-Balance-Volume (OBV) line is another way to view volume and this indicator has been stalled to slightly weaker since the middle of October. The Moving Average Convergence Divergence (MACD) oscillator is in a take profits sell position.
In this weekly Japanese candlestick chart of AFRM, below, we can see a top reversal pattern - you can decide for yourself - either a bearish engulfing pattern or a hanging man pattern with a large red (bearish) candle for confirmation. The weekly OBV line shows a possible peak and the MACD oscillator has begun to narrow.
In this daily Point and Figure chart of AFRM, below, we can see that the software has "read" the X's and O's and projected a downside price target.
Bottom line strategy: In our September 30 review we recommended that "First raise stops to $105 from $69. Our price targets are $165 and then $189." I hope that traders took some profits at $165 or higher. Raise stops on your remaining longs to $135 from $105.