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In our August 26 overview of Affirm (AFRM) we wrote that “The charts and indicators of AFRM are weak and merchants ought to keep away from the lengthy aspect for now. Perhaps later…”
With AFRM scheduled to report their newest quarterly numbers after the shut of buying and selling Tuesday let’s verify the charts once more.
On this every day bar chart of AFRM, under, we are able to see that costs have been weak since our late August overview. AFRM remains to be in a downward development and trades under the declining 50-day transferring 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 Shifting Common Convergence Divergence (MACD) oscillator is bearish.
On this weekly Japanese candlestick chart of AFRM, under, we are able to see a bearish image. Costs stay in a longer-term downward development as they commerce under the bearish 40-week transferring common line. The weekly OBV line is pointed down and the MACD oscillator is under the zero line in promote territory.
On this every day Level and Determine chart of AFRM, under, we are able to see a possible draw back value goal within the $9 space.
Backside line technique: I’ve no particular information of what AFRM can be telling shareholders and Wall Avenue analysts however the charts are weak and merchants ought to proceed to keep away from the lengthy aspect of AFRM.
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