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In our August 26 assessment of Affirm (AFRM) we wrote that “The charts and indicators of AFRM are weak and merchants ought to keep away from the lengthy facet for now. Possibly later…”
With AFRM scheduled to report their newest quarterly numbers after the shut of buying and selling Tuesday let’s examine the charts once more.
On this each day bar chart of AFRM, under, we will see that costs have been weak since our late August assessment. AFRM remains to be in a downward development and trades under the declining 50-day shifting common line and under the bearish 200-day line.
The On-Stability-Quantity (OBV) line is in a decline and tells us that sellers of AFRM have been extra aggressive with heavier buying and selling quantity being transacted on days when AFRM has closed decrease.
The Transferring Common Convergence Divergence (MACD) oscillator is bearish.
On this weekly Japanese candlestick chart of AFRM, under, we will see a bearish image. Costs stay in a longer-term downward development as they commerce under the bearish 40-week shifting common line. The weekly OBV line is pointed down and the MACD oscillator is under the zero line in promote territory.
On this each day Level and Determine chart of AFRM, under, we will see a possible draw back worth goal within the $9 space.
Backside line technique: I’ve no particular data of what AFRM will probably be telling shareholders and Wall Road analysts however the charts are weak and merchants ought to proceed to keep away from the lengthy facet of AFRM.
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