Shares of the buy now, pay later fintech company Affirm ( AFRM) are down sharply in reaction to a weak earnings quarter and disappointing guidance. A sell-side firm lowered their price target to $29 from $35 but the charts are even more bearish.
Let's check.
In the daily bar chart of AFRM, below, we can see that the shares bottomed in May and June and rallied into August. The rally petered out around mid-month and prices have pulled back to the rising 50-day moving average line. The slope of the slower-to-react 200-day moving average line remains negative.
The On-Balance-Volume (OBV) line shows strength from May into the middle of August where it began to weaken. The Moving Average Convergence Divergence (MACD) oscillator turned positive in late July but has crossed lower in August. A new outright sell signal could happen soon. 
In the weekly Japanese candlestick chart of AFRM, below, we see a mixed picture. Prices almost made a bearish engulfing pattern in early August. AFRM is turning lower.
The trading volume did not expand on the recovery rally from June. The OBV line rose in July but looks stalled in August. The MACD oscillator is improving but still is well below the zero line and a buy signal.
In this daily Point and Figure chart of AFRM, below, we can see a potential downside price target in the $12 area.
In this weekly Point and Figure chart of AFRM, below, we can see a potential upside price target but a trade at $22 should turn the chart bearish.
Bottom-line strategy: The charts and indicators of AFRM are weak and traders should avoid the long side for now. Maybe later...
