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Affirm () has been forming a bottoming structure over the past two years. While it has taken time to develop, recent market movements suggest potential trading opportunities ahead, which is a complete different setup from the other breakout entry . Current Market Action
After an initial strong rally, Affirm experienced a grinding down action, returning to support.
The stock is currently testing a critical support level, which was previously tested before a rally.
A potential bullish reversal bar could signal a new swing to the upside.
What to Watch For
Wait for Affirm to break above the high of the current bar to confirm a reversal.
Look for another swing that mirrors past bullish movements.
Key levels to watch for confirmation of a breakout include support at the current level and previous high levels.
(Click on image to enlarge)
Affirm (AFRM)
Reward-to-Risk Opportunity
Traders can aim for a reward-to-risk (RR) ratio of 2 to 3.
A quick swing trade opportunity may last one to two weeks, depending on market conditions.
Potential for a higher reward if Affirm retests the previous highs.
Affirm (AFRM) Trading Plan VideoWatch the video below to find out the entry trigger, stop loss and detailed analysis based on the Wyckoff method.Video Length: 00:01:04More By This Author:
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