Bullish stance on AFRM for the next couple of months; expects continued upside supported by analyst activity and technicals.

a firm being a firm this morning, but what trends should we notice on this chart? So we can see as well a firm had a a notable push to the upside after our last earnings event.

You can see here this large candle that uh pretty much evaporated as the day went on. though we did not quite take out those previous highs near 92. That's our pink line here. But we did open here around these old highs near 86.

So we can see as well a downward sloping trend line in play. Our blue line here is still uh the predominant price pattern here, but it's accelerated somewhat to the downside. We have now a sharper, steeper channel pointing to the downside here with our two white lines.

In terms of horizontal levels to consider, we also had some recent lows here near 72. A repeated floor near 70 that price has uh pushed its way back above. And the gap here near uh 6750 has also been filled at this point.

So now our moving averages that we follow show something interesting. We did seem to solidify at our 251day exponential moving average representing one trading year in orange here. That one comes in at 6770.

Right now, we are uh looking like we have crossed above our 5-day EMA as of Friday's session. Now, we have a confluence. Our 21-day and 63-day exponential moving averages are right on top of each other near about 7350 or so.

So, this is a a notable convergence point here. That would represent not only a breakout from above our channel, but also a push above two of our mediumterm moving averages here.

RSI has been trending lower. We have again like price accelerated more to the downside. We are below the 50 midline. We do have a downward sloping red trend line still in place.

So look for a break above both of those two things concurrently with price pushing into new relative highs.

Our volume profile study in this case shows that we are between two uh or rather uh uh the biggest volume node here 65 to 78 our heaviest trading area on our chart. That also contains our point of control.

That's right about where we closed on Friday, 7179, our thick red line, the heaviest trading area of all.

You can also see very heavy volume that we saw recently after our earnings event despite price fading somewhat uh from that uh uh uh high that we saw in the '9s there. So, if we were to keep moving higher, then there's another small node here around 82 to 85 or so. if we were to break lower.

Significant activity down here 47 to 52 as well.

Right. So to look at our expected moves here based on the options market, we can see that this Friday's monthly expiration here uh September 18th plus or minus about oops uh excuse me plus or minus about 5.3%.

But today we're going to look for a trade here in November 20th. green box here plus or minus about 21 a.5% here. So you can see that coincides roughly with those old highs that we saw near the 90 level.

So that's how we're going to work on our strikes here. Plus one November 20th 80 90 call vertical at a 225 debit here. So 67 days out a bullish trade. 225 is our max loss. That's our debit paid.

Max profit potentially 775 roughly one to uh three or so three and a half in terms of our risk-to-reward.

Um we can also see that our uh break even 8225 about 12.7% to the upside is easily fitting within that potential expected move which is 21.5%.

Of course it's not a guarantee it's going to get there but uh the analyst activity has been a little bit more bullish it seems like. So this is a trade looking for some continued upside over the next couple months.