AFRM Stock Jumps 28%; New 52 Week High?

Affirm Holdings Inc. AFRM stock price surged 28% in the previous session after the release of earnings. The sudden jump in the Affirm stock has surprised investors and triggered positive sentiment.

Affirm stock (NASDAQ: AFRM) managed to climb above the 50-day and 200-day EMA. It showcases that the short-term trend as well as the positional trend has reversed upward.

AFRM stock formed a giant bullish candle and the buying volume also surged. It denotes that some big investors have turned bullish and are expecting outperformance.

At the beginning of August, Affirm Holdings Inc. stock attempted to break out of the $20.00 hurdle. But the attempt failed and Affirm shares witnessed profit booking.

Affirm Share prices declined and slipped below the 50-day EMA which invites further downfall. Luckily, the buyers get activated near $14.00 and succeed in defending the previous month’s low.

Affirm stock price (NASDAQ: AFRM) closed the previous session near $17.79 with an intraday rise of 28.82%. The market capitalization of Affirm Holdings stands at $5.26 Billion.

Affirm Holdings Inc. Stock: Will the Momentum Continue?

Affirm Holdings Inc. AFRM stock price took a U-turn and showed a sharp rise after the earnings. The correction had taken a halt and buyers seemed to be returning back on track.

Affirm stock bounced from the crucial support and quarterly earnings fueled the rally. Affirm Holdings (NASDAQ: AFRM) released its earnings on August 24, 2023.

It reported an EPS of -0.69 and revenue of $445.825 Million. However, the EPS estimates were -0.865, and the revenue estimates were $406.178 Million.

Affirm Holdings Inc. succeeded in beating the estimates. Due to that, the AFRM stock price reacted positively and skyrocketed.

AFRM Stock Turned Bullish on Multiple Time Frames

AFRM stock price (NASDAQ: AFRM) turned bullish on the daily and weekly timeframes. In the past 3 months, Affirm share prices are consolidating in the wide range between $13 to $20.

Previously, buyers tried to break the higher range but got a sharp rejection. At present, Affirm stock prices gained momentum and are prepared for the next attempt.

If this time the buyers succeed in breaking the $20.00 hurdle then prices might reach 52 week high. However, if AFRM shares face rejection then it might retrace down to the EMAs.

Conclusion

The AFRM shares bounced back with a strong buying volume so the momentum might continue in the coming months. Affirm Stock is in bulls grip and a new 52 week high is possible.

Technical levels

Resistance levels: $20.00 and $22.70
Support levels: $12.77 and $9.03

Disclaimer

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