Is This Technology Company Setting Up For A Blowout Report?

As most of you know by now, I'm a huge fan of relative strength, especially as a company approaches its quarterly earnings report.

I looked at all 82 companies that are on our Upcoming Earnings - Relative Strength ChartList for this week and several looked solid, but I think my favorite is Affirm Holdings (AFRM).

Its AD line has been soaring and it's nearing a 3 1/2 year price high. Check this out:

Enter Affirm Holdings (AFRM):

I particularly like the fact that its relative strength vs. its computer services peers ($DJUSDV) is now at its highest level since February 2022.

Best reward-to-risk entry would be at the bottom of its current up channel, closer to say 72-73, but there's also still a lot of upside in this channel if a breakout above 82-83 were to occur.

If there's one potential downside, it's that volume has been lackluster during the uptrend off the April low. Still, I like a lot on this chart and suspect a breakout is coming.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.