Technical Analysis:
AFRM has shown significant bearish momentum, dropping from $75.64 to $68.55 in the latest trading session. The stock is experiencing heavy put option activity with a Put/Call ratio of 1.68, indicating strong bearish sentiment among options traders.
News Impact:
- Recent partnership expansion with Shopify and growing BNPL market share to 17%
- Strong Q4 performance with 35% increase in gross merchandise volume to $10.1 billion and 47% revenue growth
- Active consumer base grew 23% to 21 million
Price Prediction for Next Week (Feb 24-28, 2025):
Based on technical indicators and recent bearish momentum:
- Resistance levels: $71.00 (recent put option focus)
- Support levels: $65.00
- Expected trading range: $65.00 - $71.00
Target Price: $66.50 by end of next week
Recommendation: SELL
Rationale:
- Heavy put options activity suggesting institutional bearish sentiment
- Technical breakdown below key support levels
- Overbought conditions from recent rally requiring correction
- High volatility expected with significant put options at $71 and $69 strikes
Entry: Current price ($68.67)
Stop Loss: $71.50
Target: $66.50
Technical Analysis:
AFRM has shown significant bearish momentum, dropping from $75.64 to $68.55 in the latest trading session. The stock is experiencing heavy put option activity with a Put/Call ratio of 1.68, indicating strong bearish sentiment among options traders.
News Impact:
- Recent partnership expansion with Shopify and growing BNPL market share to 17%
- Strong Q4 performance with 35% increase in gross merchandise volume to $10.1 billion and 47% revenue growth
- Active consumer base grew 23% to 21 million
Price Prediction for Next Week (Feb 24-28, 2025):
Based on technical indicators and recent bearish momentum:
- Resistance levels: $71.00 (recent put option focus)
- Support levels: $65.00
- Expected trading range: $65.00 - $71.00
Target Price: $66.50 by end of next week
Recommendation: SELL
Rationale:
- Heavy put options activity suggesting institutional bearish sentiment
- Technical breakdown below key support levels
- Overbought conditions from recent rally requiring correction
- High volatility expected with significant put options at $71 and $69 strikes
Entry: Current price ($68.67)
Stop Loss: $71.50
Target: $66.50