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 in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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