We looked at AFRM back on July 15 and wrote that "AFRM may be a buy from a fundamental perspective, but the charts suggest things could get a lot cheaper in the weeks ahead."
In the updated daily Japanese candlestick chart of AFRM, below, we can see that prices made a higher low in July but have yet to make a higher high above the June highs to give us an uptrend. The shares have been trading around the 20-day and 50-day moving averages.
The On-Balance-Volume (OBV) line shows some improvement from its low in May. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line telling us there is some positive trend strength.
In the weekly Japanese candlestick chart of AFRM, below, we can see that a bullish (white) candle above $70 will improve the picture.
The weekly OBV line is turning higher and the 12-week price momentum has turned positive.
In this daily Point and Figure chart of AFRM, below, we can see a downside price target in the $56 area. A rally to $70 should improve the picture.
In this weekly Point and Figure chart of AFRM, below, we can see a potential price target in the $104 area.
Bottom-line strategy: In July the charts looked weak and the risk appeared to be to the downside. One month later and the charts are more positive with AFRM making a higher low. Aggressive traders could probe the long side of AFRM on strength above $70 risking to $58. The $104 area is our first price target.