Don't Ignore This Chart

American Express Beats Earnings, Raises Guidance And Challenges Resistance

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

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