For his final Executive Decision segment of Wednesday's "Mad Money" program, host Jim Cramer checked in with Max Levchin, co-founder and CEO of Affirm Holdings (AFRM) , an online payments company.
When asked how higher interest rates would affect his company, Levchin said that as rates go up, things actually get better for Affirm because its 0% interest offers will only become more appealing to consumers.
Let's check out the charts of Affirm again. We looked at AFRM on Sept. 10 and wrote, "Continue to hold longs recommended in our last review. Raise stops to $69 and raise your target to the $165 area from $104. Aggressive traders could add to longs on available weakness."
In this updated daily Japanese candlestick chart of AFRM, below, we can see that prices have been very strong the past two months. We can see a recent pullback in price with prices coming back to the rising 20-day moving average line. (We used a 20-day and 50-day average because of the lack of price history.) Trading volume has increased in the past month, telling us there has been some real power behind the advance. The On-Balance-Volume (OBV) line has increased in fits and starts from May, telling us that traders are being more aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish territory but crossing to the downside for a take profit sell signal.
In this daily Point and Figure chart of AFRM, below, we can see a new upside price target in the $189 area. A trade at $103.41 could weaken the picture.
Bottom line strategy: First raise stops to $105 from $69. Our price targets are $165 and then $189.