Affirm (AFRM) offers "buy now, pay later" services to consumers and the company is slated to report latest numbers to shareholders this coming Wednesday after the close of trading. Let's review the charts and indicators.
In this daily bar chart of AFRM, below, I can see that prices have suffered a deep decline the past 12 months. Prices declined to make lows in December and January followed by a rally above the 50-day moving average line and a test of the 200-day moving average. Trading volume has increased the past two months and the On-Balance-Volume (OBV) line shows a rise in January.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has recently crossed above the zero-line for an outright buy signal.
In this weekly Japanese candlestick chart of AFRM, below, I see a mixed picture. Prices have a big decline from the high in late 2021. Prices sank to a low in December 2022 and have rebounded to the declining 40-week moving average line. The weekly OBV line shows a recent sharp rise after a longer-term decline. The MACD oscillator shows improvement but remains well below the zero-line.
In this daily Point and Figure chart of AFRM, below, I can see a price target of $25.
In this second Point and Figure chart of AFRM, below, I used weekly price data. Here the software shows us a $48 price target.
Bottom line strategy: I have no special knowledge of what AFRM will tell shareholders next week but the share price has doubled in the past month after a huge decline. The Point and Figure charts suggest higher prices could be reached, but I am not impressed with the price action and the lack of a clear base pattern. Just saying.
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