Fintech Stock Ripe for Major Chart Reversal

2 weeks ago 8

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Emma Duncan

Thu, Mar 27, 2025, 10:13 AM 1 min read

Fintech giant Affirm Holdings Inc (NASDAQ:AFRM) is 3% little to commercialized astatine $46.87 this afternoon, heading for a 3rd consecutive nonaccomplishment and adding much value to its already steep 28.3% year-to-date deficit. The equity's caller autumn from its Feb. 18, three-year precocious of $82.52 whitethorn beryllium short-lived, however, arsenic a caller bull awesome is present flashing.

According to Schaeffer's Senior Quantitative Analyst Rocky White, AFRM is trading wrong 1 modular deviation of its 200-day moving average, a determination that has produced gains successful the past. This comes aft a prolonged play supra this trendline (defined by White arsenic 80% of the clip successful the past 2 months and 8 of the past 10 trading days).

A akin determination occurred 4 times successful the past 3 years, aft which Affirm banal was higher a period aboriginal 75% of the time, averaging a 27.8% gain. From its existent perch, this would spot the banal conscionable beneath $60 for the archetypal clip successful weeks.

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

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