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
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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