Chart of the Week: Affirm
Hey good morning everybody. Happy Wednesday. It’s time for our chart of the week. And we’re gonna revisit an old friend of ours – a name that we did prior in a chart of the week, maybe about a year, a year and a half ago. It’s Affirm; AFRM is the symbol. Let’s take a look at the chart. It’s been looking rather interesting right now.
As you can see, the stock really tumbled here in the early part of spring. Came all the way down from about the $80 level – more than cut in half – got down to about $32 in the early part of April. But ever since it’s been making a nice series of higher highs, higher lows. That is our textbook definition of an uptrend.
And above the moving averages – it came up, crossed at this 50 day moving average – take a look here – hit the 100 day moving average, came back down and retested that 50 day moving average for about 3 days and found some good support up there, and has been making a short-term uptrend of higher highs and higher lows ever since then. It hit just under $65 last week, pulled back a little bit here, and now it’s starting to make another move up here.
So here do I think this stock is gonna go? I think it’s gonna make a run up towards those highs from last week, test those, make another higher low, and then finally make a run above there and start making a run up towards those old highs over the next several weeks.
So this stock has exhibited some really good relative strength here; you can see that on the chart. Money flow has been strong. Also very impressive is this on-balance volume. MACD is still on a buy signal, and we’ve had good bullish volume trends over the past several weeks.
Some of its competitors aren’t doing so well. Bill being another one. A new issue came out recently – Chym – which is in a similar business as Affirm, and that was a pretty strong IPO.
So the market seems to be opening up here for Affirm. We like it. And the chart looks good as well.
Take a look at that one – AFRM. Thanks so much for watching everyone, and I’ll see you guys next time.
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