We take a quick look at Afterpay Ltd [ASX:APT] after its shares hit a new record high.
The darling of Australia’s fintech sector is on a massive tear. At the time of writing the APT share price was up to $61.08, or 3.23% up from the previous day’s trade.
What’s been happening with the APT share price
Afterpay is one of the largest providers of the ‘buy now, pay later’ finance services and in recent times a number of other providers have joined the circus.
While this sector sold off during the March lows, it now appears a BNPL bonanza is taking place.
The impact of the novel COVID-19 virus changed everything, with people around the world working from home leading to an explosion in online shopping.
In the case of Afterpay, its stock price has been boosted by both the Australian market and its offerings abroad.
Afterpay in the US announced on 21 May that it had reached five million active customers, while in the UK the company is known as Clearpay.
On 23 June, Clearpay said it had reached the milestone of one million active users in its first year.
‘The world and the industry are changing at a rapid pace, and during this challenging time consumers are looking for ways to pay using their own money — instead of turning to expensive loans with interest, fees or revolving debt,’ said Nick Molnar, Co-Founder of Clearpay.
Where to from here
It is clear now that the BNPL sector is seeing the silver lining of COVID-19, perhaps none more so than Afterpay. With increasing customer usage and a rocketing share price — the upwards momentum shows little sign of abating on the chart.
Taking a look at some technical levels, the following targets could come into play:
You can see the APT share price broke through the nearest resistance level of $59.20 after a small bout of sideways trading, moving up to $61.08 at the time of writing.
Should the trend continue, the next level that may provide resistance to a further move up could be around $66.
On the downside, if the price were to fall, levels of $56, $52, and $46 may come into play.
Now the question is…anything that goes up must come down, so how long can the rally last?
For Money Morning