Don't Ignore This Chart

Give American Express Some Credit

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After a double top and nearly two years of downtrending price, American Express (AXP) has finally turned the corner and its stock price is rising.  Based on improving volume trends, strengthening momentum, and a hot financial sector, I look for the recent price strength to continue.  Check out the AXP weekly chart:

I wrote about AXP on this blog about five weeks ago, indicating that the breakout on heavy volume (blue arrows) suggested the table was turning.  Now we've seen key trendline resistance (red dotted line) cleared along with short-term price resistance.  I'd look for additional strength here, although AXP could stall temporarily near 75 as that level has been a key pivot point at other times on the chart.

Happy trading!

Tom

Tom Bowley
About the author: co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years. His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading. A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015. Learn More
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