Don't Ignore This Chart!

American Express Beats Earnings, Raises Guidance And Challenges Resistance

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Wednesday, after the closing bell, American Express (AXP) posted quarterly results that blew away consensus estimates for EPS and also managed to top revenue estimates.  Furthermore, AXP raised its guidance on a forward-looking basis and shareholders are being rewarded today with a gap higher on massive volume.  AXP is up nearly 9% at last check and could be looking at higher prices if it can clear price resistance as follows:

Today's close will be important.  Leaving a tail above price resistance with a close beneath it would suggest the higher likelihood of a short-term pullback.  However, closing above 66.50-67.00 would encourage more technical buyers, especially given today's volume.  Also, the surge in price is being accompanied by a similar surge in its SCTR ranking.  Momentum here is building on both a fundamental and technical basis.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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