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: 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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