Shareholders of buy now pay later Affirm Holdings (AFRM) are waiting for the latest quarterly earnings report due out after the close of trading today (Tuesday). Let's check on the position of the charts and indicators.
In this daily bar chart of AFRM, below, I can see a potential triple bottom pattern. AFRM has made lows in December, March and hopefully May. Prices have just rallied above the 50-day moving average line but remain below the declining 200-day line.
The On-Balance-Volume (OBV) line shows some improvement from late March. The Moving Average Convergence Divergence (MACD) oscillator is on the zero line and very close to an outright buy signal.
In this weekly Japanese candlestick chart of AFRM, below, the most impressive technical development is the strong rise in the weekly OBV line.
In this daily Point and Figure chart of AFRM, below, I can see a price target in the $19 area.
In this weekly Point and Figure chart of AFRM, below, I can see the same $19 target as on the daily chart above.
Bottom line strategy: I have no special knowledge of what AFRM will tell shareholders this evening. The charts and indicators have improved so things are favoring the upside now but the rally ahead of the news means a big beat may be needed to keep the rise going.
