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
