Affirm Holdings (AFRM: NASDAQ)

Affirm Holdings (AFRM) is a digital and mobile-first platform that has carved a niche for itself in the burgeoning buy now, pay later (BNPL) market. The BNPL industry has gained significant traction, particularly among younger consumers who prefer flexible payment options over traditional credit cards. If the BNPL sector continues to grow at its current compound annual growth rate (CAGR), Affirm Holdings is poised for substantial valuation gains.

What sets Affirm apart from competitors like Afterpay and Klarna are its strategic partnerships with major U.S. retailers. Affirm’s collaborations with e-commerce giants Amazon and Shopify provide significant exposure to the online shopping market. Amazon, which holds a commanding 38% market share in U.S. e-commerce, is a particularly advantageous partner for Affirm, positioning the company well to capture a large share of BNPL transactions.

In a recent press release, Affirm announced the expansion of its services with Walmart, enabling customers to select pay-over-time options at self-checkout kiosks in over 4,500 Walmart stores. Previously, Affirm’s services were available on Walmart’s website and in-store but not at self-checkout stations, which account for around 30% of all retail transactions. This expansion enhances Affirm’s reach and convenience for consumers, potentially driving higher adoption rates and transaction volumes.

Given these strategic developments and the growing popularity of BNPL services, we are bullish on Affirm Holdings above the $30.50-$31.00 level. Our upside target for the stock is $54.00-$55.00, reflecting the company’s strong growth potential and its advantageous position in the BNPL market.

On Holding (ONON: NYSE)

On Holding (ONON), a global sports product developer, is showing strong technical and fundamental potential. The stock is approaching a crucial resistance level within a bullish cup and handle formation, indicating a possible breakout. Clearing this resistance could lead to substantial gains, making ONON an attractive investment opportunity.

The company’s strong brand is bolstered by high-profile athlete endorsements, including tennis champions Iga Swiatek and Ben Shelton, and marathon winner Hellen Obiri. Swiss tennis legend Roger Federer, an investor in ONON, adds significant credibility. These endorsements enhance brand visibility and market position.

Institutional support further strengthens the investment case. TD Cowen analyst John Kernan recently raised his price target for ONON from $36 to $38, maintaining a buy rating. Positive ratings from Wall Street firms signal strong institutional confidence in ONON’s growth prospects.

Strategic expansion into the Asia-Pacific market presents significant growth opportunities. ONON aims to capitalize on the increasing consumer spending on premium sports products in this region, following the success of other brands like Lululemon.

ONON plans to open 100 additional brand stores to boost market penetration and awareness. The successful Cloudmonster franchise has already driven strong sales, particularly during the 2024 holiday season. This expansion strategy, along with product success, positions ONON for continued growth.

We are bullish on ONON above the $30.50-$31.00 range, with an upside target of $51.00-$52.00. Investors should monitor ONON’s technical patterns and earnings reports for further validation of this bullish outlook.

Ethereum (ETHUSDT)

Yesterday’s market action saw a significant wick, flushing out most of the longs that jumped in after May 20th. While the ETF news is fundamentally bullish for the crypto market, it’s important to remember the market dynamics that followed the last ETF approval. Specifically, BTC and ETH experienced a 20% dump that lasted around 10 to 12 days before regaining traction. This historical context suggests that despite the positive long-term outlook, a short-term correction could be on the horizon.

For ETH, there are critical support levels to watch closely: $3,500, $3,300, and $3,200. These levels are significant because they could potentially mark the bottom before ETH makes a substantial move upwards. Given the current market volatility, it’s crucial to keep these levels on your radar. If the market does correct to these support zones, it could present an excellent buying opportunity for those looking to capitalize on the next major ETH rally.

In the meantime, traders should manage their risk carefully and be prepared for potential short-term downside. The recent ETF approval, while a positive development, could trigger a similar market response as seen previously. By closely monitoring the support levels and staying informed about market news, traders can navigate the current conditions more effectively and position themselves for the next bullish phase.

Kaspa (KASUSDT)

KAS has demonstrated notable strength over the past three weeks, positioning itself for a potential long trade. We are targeting a push into the blue area, which aligns with a major support region encompassing the 200-day Moving Average (MA), 50-day MA, trend support, and the 0.382 Fibonacci support level. This confluence of support indicators makes this zone an attractive entry point, especially if there is weakness in the market. By laddering into the position between $0.128 and $0.122, traders can lower their average entry price and minimize stop loss risk.

The plan is to capitalize on potential price movements while managing risk carefully. If the price starts to drop into this key support region, it presents an opportunity to accumulate positions at lower prices. However, it is crucial to monitor the rising trend closely. If this trend is lost, it would indicate a breakdown of major support, thereby invalidating the long trade setup.

To manage risk effectively, we set a stop loss for any candle close below $0.12, signaling a potential further decline. On the upside, take profit targets are set at $0.1395 and $0.1499. This approach allows for capturing gains while maintaining a disciplined risk management strategy, ensuring that losses are limited if the market moves against the trade.