Affirm faces strong resistance - Analysis - 16-05-2022

Affirm's stock (AFRM) rose after the group[ raised its 2022 earnings forecasts from $1.31 billion to nearly $1.33 billion, while marking a profit of 31.43%, or 5.67 points, settling at 23.71, with trading volumes surpassing 85 million shares, above 10-day averages of 24 million shares.

Technically, the stock is recouping some past losses, while venting off oversold saturation from the RSI with positive signals out of them, with the stock testing the resistance of the downward short-term trend line, with negative pressure from the 50-day SMA.

Therefore we expect the stock to return lower, targeting the support of 10.50, provided the resistance of 26.00 holds on.

Expected trend for today: Bearish