Signs of a bottom for Affirm (AFRM)

Question: Please provide support and resistance levels and any comments for AFRM (Affirm Holdings Inc.)

Affirm Holdings (AFRM) is carving out a potential base dating back to late September. The lower end of this developing bottom is holding near the rising 200-day moving average at 65.17, reinforcing the stock’s longer-term uptrend. A decisive breakout above neckline resistance at 78.98–79.38 would confirm the pattern and suggest upside to 92.55-93.20 (September highs) and then toward 98.50-100.00 (pattern count and late August peak). Until this breakout occurs, holding above or within the zone of the improving 13-, 26-, and 40-day moving averages from 71.50 down to 69.44 would maintain confidence in AFRM's bottoming process.

AFRM is also forming a potential bottom relative to the S&P 500.

Chart 1: Affirm Holdings (AFRM) (top) and relative to the S&P 500 (bottom)

On a longer-term basis, AFRM may have an even bigger base on its weekly chart. For now, we are focused on the Fibonacci retracements of the November 2021-December 2022 decline at 72.80 (38.2% retracement - tested), 92.63 (50% retracement - tested), and 112.46 (61.8% retracement - next Fibonacci retracement target). Defending the improving 13-, 26-, and 40-week moving averages from 73.91 down to 65.90 would keep the pattern constructive for AFRM.

Chart 2: Affirm Holdings (AFRM) (top) and relative to the S&P 500 (bottom)