Affirm Holdings (AFRM) gapped higher Wednesday on the heels of Amazon Pay (AMZN) adding its "Adaptive Checkout."
Let's check out the charts.
In this daily bar chart of AFRM, below, I used a "log scale" to gain some perspective. Prices have rallied from early May and have gapped higher Wednesday. This should be the fourth day of AFRM closing above the 200-day moving average line. The slope of the 50-day line is positive. The On-Balance-Volume (OBV) line shows improvement from late March. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of AFRM, below, I see a turnaround chart. Prices made a huge decline but it has been bottoming for a while now. Prices are pushing above the 40-week moving average line. The weekly OBV line shows strength from December. The MACD oscillator is just slightly below the zero line.
In this daily Point and Figure chart of AFRM, below, I can see the recent rally with the gap filled in. The software is projecting an upside price target in the $27 area.
In this weekly Point and Figure chart of AFRM, below, I can see a price target in the $40 area.
Bottom line strategy: AFRM has had a good run in recent weeks. A minor pullback in price would not surprise me. Traders could probe the long side of AFRM on weakness towards the $15 area. Risk to $12. $27 and $40 are my price targets.
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