Affirm Flies Higher On Target News: What's Next For The Stock?

Affirm Holdings Inc AFRM shares are trading higher Wednesday after Target Corporation TGT added a "buy now pay later" option via the company and Sezzle. This will allow people to buy what they need now, take advantage of the best deals, and pay at a pace that works for them.

Affirm closed up 19.95% at $133.70 at market close Wednesday. 

Affirm Holdings Daily Chart Analysis

• The stock looks to be trading in what technical traders call a cup pattern. There is a possibility the pattern forms a handle later on.
• This pattern forms when the stock makes a large move higher and needs to consolidate for a time. The stock falls and eventually finds a bottom before starting its next cycle and starts heading back higher, toward its previous highs.
• The stock is trading above the 50-day moving average (green), indicating the sentiment in the stock is likely bullish.
• The 50-day moving average may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been pushing higher the past few days and now sits at 65. This shows more buyers have entered into the stock, and now the stock is seeing more buying pressure than selling pressure. The RSI is nearing the overbought area where there will be many more buyers than sellers.

See Related: Why Affirm Shares Are Surging Higher Today

What’s Next For Affirm Holdings?

Bullish traders are looking to see the stock continue to move higher as the stock pulls away from the cup pattern. Bulls eventually would like to see the stock cool off for a time and begin to consolidate before another bullish move may happen.

Bears are looking to see the stock fall and break below the cup pattern. This could cause the stock to see a strong bearish movement following the break. Bears are also looking to see a break below the 50-day moving average for a possible change in sentiment.

Photo: Courtesy Target