Growth Capped by the 50 Day Moving Average These are 6 randomly selected growth stocks that have been hammered and just rejected off the 50 day moving average yesterday.
Watch for the downside trend to continue in these stocks until they're able to at least breach the 50dma.
The question is do these stocks make higher lows (if the downward trend continues) or lower lows?
IMO if you are a trend follower, you should avoid any stocks on the long side if they look like this (unless you're trying to day trade a bounce).
AFRM
AFRM might have a very strong rally under the conditions of the correct markets and with the fact that the markets priced-in the FED's correct trajectory and as several technical indicators are showing on the NDX and the SPX this might take place very soon..
** this is not financial advice, just my humble opinion **
AFRM - Rolling over againLosing 9 EMA, albeit volume is low, but that can add to the fuel to fire. unless it claims 42 or some news acts a catalyst, could test low again in coming days.
Disclosure: despite my good judgment, I am stuck in this. Maybe I will cut it lose for loss if price acts weak next couple of days.
AFFIRM HOLDINGS, INC - BEARISH SCENARIOThe earnings report was released last Thursday by Affirm Holdings.
The company`s revenue rose more than 70 % year over year to $361 million beating estimates by $28 million, but its net loss widened to $0.57 per share, which missed expectations by $0.20.
New sales were triggered and retest of $ 47 support level.
Successful breakout will send the price back into the price channel.
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AFRM - Battle of flagsBroke downtrend and rallied hard on news from the lows and got pulled back from the supply, just to come right back today. Constructive volume suggests bullish continuation is likely.
Anything above 51, should be good spot to go long.
As a side note, AFRM in my opinion is pulling in new partners in retail at incredible pace. Even if their bottomline numbers are below target, I expect them to blow away with new clients.
AFRM - Looking like another bearflagPrice action over next couple of days would decide if this is another bearflag or reversal.
Trend favors bears...double bottom at 48 would put this in an interesting spot.
If it stays above 56, bull case becomes strong.
I am bullish on this long term, but need to base before I can jump in.
AFRM: Time to Buy? AFRM is another name that is in a basing faze as it tries to find its footing in this new world of interest rate hikes and yields rising.
Not a huge fan of their fundamentals, but may take a stab around the $50 mark if we get around that area for a swing back to $71. Possible it gets to $90 by august, $110 tops.
AFRM possible reversalWhat’s bullish:
- Filled the gap
- Bullish divergence
- Bounced off strong resistance line transforming into support line
- Bounced off strong support line since May
- Earnings approaching
What’s bearish:
- Still under 50ema
- Overall sentiment for Fintech is bearish at the moment
Me:
Hello started with stocks 1 year ago. After analyzing many charts I have accumulate more experience than a newb now I’m a newb+. Feel free to give me feedback
Target level for AffirmOn August 2, 2021, I published my first analysis about NASDAQ:AFRM when it was 64.71:
Now it is on the WSB's list (rank 9 in today top mentioned)
I believe this business model "Buy now Pay Later" could be expanding very fast in the future.
A successful Australian Model "Afterpay" shows huge potential in this field.
Affirm could reach a new all-time high and surpass the previous one..!
and the gap in the chart may not fill in the near future..!
AFRM: Gann Fans, AFRM is currently Trading below its 50/20 MA and its 12/26 EMA
the 12 EMA just crossed under the 26
Note the gap fill attempt
Using the Gann, it looks like support can be assumed along the 3/1 upangle and the 2/1 upangle to act as resistance if AFRM is to turn around
By using the 3/1 upangle AFRM may attempt that turnaround.
Assume the 3/1 downangle as resistance for the next 4-6 weeks as well unless broken by the 3/1 upangle
In my opinion, AFRM is finding a bottom soon
If AFRM decides to fill the gap in the next few weeks, I would look to the 8/1 to be support and this would indicate more bearish price action. ( Lower Lows would be set).
Neutral now, will update as time progresses on this one.
I would suggest keeping an eye on the options chain as well, big rolling down of calls and some big BTO purchases came in today as well.
Ticker Side Stirke C/P Date Spread Spot Size Prem OI Volume
AFRM BUY 95 call 2022-02-18 $7.15 - $7.40 $7.65 15,200 $11.6M 381 16.1K Floor
AFRM BUY 105 call 2022-05-20 $7.60 - $8.20 $8.25 13,950 $11.5M 642 15K Floor
$FB $AFRM $SE $NVDA I OptionsSwing WatchlistFB 4H I FB made a double bottom near $305 and is now testing our trend. Watching for a breakout above our downtrend, we have resistance near $350.
AFRM 2H I Picked up activity on AFRM $110c for 12/31. Watching for a break of Friday's high and retest of our downtrend on the hourly time frame.
SE 2H I SE is down nearly 40% from recent highs. Expecting a breakout to the upside from our pattern. SE is consolidating between $220 and $225.
NVDA 2H I NVDA made a double bottom near $270 and is now testing our downtrend. There is bullish OS ALGO activity betting on a break out to $320 this week.
AFRM - Inside Day Break out or DownAFRM has broken down a lot since its high and is sitting at an inside day.
I will be taking weekly 90P under 92.34 and 105C over 102.39 (I generally take calls 2 weeks out)
My rule is to wait at least 15-30 minutes into the day for the market to pick a direction especially if we gap up or down i wait for a retest.