Tiger Brokers

Fintech Stock Ripe for Major Chart Reversal

Schaeffer's Investment Research
28 Mar

Fintech giant Affirm Holdings Inc (NASDAQ:AFRM) is 3% lower to trade at $46.87 this afternoon, heading for a third consecutive loss and adding more weight to its already steep 28.3% year-to-date deficit. The equity's recent fall from its Feb. 18, three-year high of $82.52 may be short-lived, however, as a new bull signal is now flashing.

According to Schaeffer's Senior Quantitative Analyst Rocky White, AFRM is trading within one standard deviation of its 200-day moving average, a move that has produced gains in the past. This comes after a prolonged period above this trendline (defined by White as 80% of the time in the past two months and eight of the last 10 trading days).
 
A similar move occurred four times in the past three years, after which Affirm stock was higher a month later 75% of the time, averaging a 27.8% gain. From its current perch, this would place the stock just below $60 for the first time in weeks.

 
An unwinding of pessimism in the options pits could be a tailwind for the shares. Specifically, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.08 sits higher than 96% of annual readings.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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