A sell side firm says that 30-day delinquencies for the buy now pay later firm Affirm Holdings (AFRM) do not look that good. Is this "old news" at this point in time? Let's see what the charts and indicators suggest.
In this daily bar chart of AFRM, below, we can see that prices have endured a long and very painful decline in price. Prices have turned sideways for the past two months but still remain below the declining 50-day and 200-day moving averages.
The On-Balance-Volume (OBV) line has actually moved sideways since late February. The Moving Average Convergence Divergence (MACD) oscillator has improved in recent months but still has not yet crossed above the zero line.
In this weekly Japanese candlestick chart of AFRM, below, we can see two recent doji patterns telling us that buyers and sellers of AFRM are in balance. A bullish candle this week would tip the picture to the upside. The weekly OBV line is trying to bottom and the MACD oscillator is improving.
In this daily Point and Figure chart of AFRM, below, we can see an upside price target of $29.
Bottom line strategy: AFRM has been "taken to the woodshed" but it looks like we will have a relief rally. Only nimble traders need apply. Looking for a rebound rally to the $29 area.
