Looking at a simple trend and channel of 
AFRM, it is quite clear it is in a downtrend. This begun pretty much on the dot of the start of 2024 and has been consistent ever since. Some positive news today, sending price up 4-5%, far from interrupting the trend. What is interesting is how price has hugged the lower line of the channel numerous times all along, and only twice touched the upper line. It has also pretty much been below the 50 EMA since crossing down, with a few false breaks, and is once again approaching the 50 EMA from below now. This could trigger a push down. It is not unlikely price will seek the lower line once again, however, make note that the last touch was April 16. Not going into fundamentals here, but AFRM presents earnings on Aug 22, and has a history of beating expectations. This could trigger a reaction up. On the other hand, AFRM is seeing more competition from big tech companies, which might affect business, but probably not the next earnings release. So, earnings is an event to pay attention to, however there should be room on the downside before we get to mid/late August. Do your own DD and let me know what you think.
AFRM, it is quite clear it is in a downtrend. This begun pretty much on the dot of the start of 2024 and has been consistent ever since. Some positive news today, sending price up 4-5%, far from interrupting the trend. What is interesting is how price has hugged the lower line of the channel numerous times all along, and only twice touched the upper line. It has also pretty much been below the 50 EMA since crossing down, with a few false breaks, and is once again approaching the 50 EMA from below now. This could trigger a push down. It is not unlikely price will seek the lower line once again, however, make note that the last touch was April 16. Not going into fundamentals here, but AFRM presents earnings on Aug 22, and has a history of beating expectations. This could trigger a reaction up. On the other hand, AFRM is seeing more competition from big tech companies, which might affect business, but probably not the next earnings release. So, earnings is an event to pay attention to, however there should be room on the downside before we get to mid/late August. Do your own DD and let me know what you think.Note
Still keeping inside the decending channel, with lower highs and lower lows. Update: Earnings is to be released after close Aug 28, not 22.Trade active
AFRM was very close to touching the upper band of the falling channel today, and has had a good run the last 2-3 weeks. As per its behaviour in the time frame in question, we should see turn down in the direction of the lower band. A few flags are the current positive momentum in the market in general, and said earnings release on Aug 28. This could keep pushing price up momentarily. However, for the reasons mentioned above, I think price will fall back after the fuss is over. Trade closed: stop reached
The gap up after earnings was of a magnitude, that I believe it will take a while for the stock to decent back down. Closing the trade for now, will keep en eye on it in the coming weeks.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.