AFRM Affirm Holdings Inc.  (AFRM)

Original Alert went out on October 08, 2021.

Looking at the chart above, AFRM is trading higher from its lower support level near $108.  At the time of writing, this stock is being squeezed between the 13 and 30 hourly moving averages with the 100 hourly above near $115, and the 200 hourly below near $105.  

AFRM has been in break mode since announcing their deal with AMZN a few weeks ago.  Pouring some fuel on the fire, they announced great earnings after that.  I think the recent pullback is a great entry and I am looking to load up soon.

Considering my stop first, I plan to have a stop limit on the trade if AFRM closes under $107, which is below the recent low from 2 weeks ago.  The stock did not hit that level last week even though the market was the roughest we have seen in a long time.  

That is a very strong sign to me.  When a stock doesn’t break lower when the market collapses, that is a great signal that buyers want to step in.  We have seen an “inside week” and also 2 “inside days” for AFRM in the market turbulence, which are also very strong signals.

Also consider that we have the Christmas season coming up soon and I expect that many retailers will be adapting AFRM on their checkout pages. 

I believe that this should provide a lot of support as we head into December.

On the upside, I plan to scale out of half of this trade near $130, which is the recent high.  After that, I would either protect the remaining half at breakeven or shoot for $140+ if we see a surge past the all-time highs.