Skip to main content

American Express Co. (AXP) – Consolidating for Potential Breakout


American Express Co. (AXP) – Consolidating for Potential Breakout

The chart of American Express Co. (AXP) highlights a potential breakout scenario, drawing attention to traders seeking strong risk-reward setups. Below is a detailed analysis of the stock’s price action and technical indicators to inform your trading decisions.

Market Structure and Price Action
AXP has been consolidating just below the USD 308.00 resistance level, forming a tight trading range. This pattern suggests a possible accumulation phase, with market participants preparing for the next significant price move. The range-bound nature of the stock offers a clear breakout level that, once breached, could trigger upward momentum.

Technical Indicators

  1. Relative Strength Index (RSI): The RSI currently stands at 10.37, showing that the stock is outperforming the broader S&P 500 index. This relative strength aligns with bullish sentiment and points toward the possibility of continued upward momentum.

  2. FFI Indicator: The FFI indicator remains subdued during recent periods of selling. This indicates that selling pressure is limited, supporting the likelihood of a bullish breakout when volume increases.

Key Levels to Watch

  • Breakout Level: USD308.00
    A breakout above this level would signal a strong bullish move. Watch for confirmation through increased volume and sustained price action above this resistance.

  • Support Level/Stop-Loss: USD286.35
    If the price drops below this level, it would invalidate the bullish thesis. This acts as a key stop-loss level for risk management.

  • Target Levels:

    • 1st Target: USD329.65
    • 2nd Target: USD351.30

    These levels are derived from previous resistance zones and Fibonacci extensions, representing logical areas for profit-taking.

Trade Setup

  • Entry Point: Enter on a confirmed breakout above USD308.00, supported by increased volume and strong price action.
  • Stop-Loss: Place a stop-loss below USD286.35 to protect against downside risk.
  • Targets: Consider taking partial profits at USD329.65 and exiting fully at USD 351.30 to maximize returns.

Conclusion

American Express Co. (AXP) is setting up for a potential breakout above its critical resistance level at USD 308.00. With strong relative strength and subdued selling pressure, the stock has the foundation for a bullish move. Traders should monitor the stock closely for volume confirmation at the breakout and adhere to stop-loss levels to manage risk effectively.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult a financial advisor before making trading decisions.

Most Popular

Historical Stock Market Performance During the Year of the Snake (2025)

Historical Stock Market Performance During the Year of the Snake (2025) Introduction: The Chinese zodiac plays a fascinating role in shaping cultural beliefs and behaviors. Among the 12 zodiac animals, the Year of the Snake is often associated with intelligence, caution, and financial shrewdness. We take a simply review of three key indices, S&P 500, Hang Seng Index (HSI), and Straits Times Index (STI),  annual performance  during the Year of the Snake. Key Observations from the Data: S&P 500 Performance: Average annual return: 0.47% . Win/Loss ratio: 37.5% (3 years of gains vs. 5 years of losses). Notable years: 1989 marked a robust gain of 27.25% , while 1941 saw a steep decline of -20.22% , coinciding with global tensions during World War II. HSI Performance: Average annual return: -5.36% . Win/Loss ratio: 66.67% (2 years of gains vs. 1 year of losses). Notable years: The index's strongest year was 1989, with a return of 5.55% , while 2001 suffered a severe decli...
Read more

BYD Co (1211:HK) Witnessing Signs of Strength

BYD Co (1211:HK) Witnessing Signs of Strength On Friday, we observed strong buying within a wide trading range, with the stock closing near the day’s high and good volume recorded. The previous two days of selling showed relatively low volume, indicating potential supply exhaustion. The stock price is currently at a key resistance level, constrained by a downward trendline and a horizontal support-turned-resistance line. A breakout above this level could signal a potential trend reversal , with an initial technical price target of HK$300.00. The stock is outperforming the broader market, indicating strong market demand, as evidenced by our proprietary Relative Strength Indicator (RSI), which is above zero. Additionally, the volume momentum indicator (FFI) is improving, further supporting the possibility of supply exhaustion. The Stochastic indicator also continues to trend higher, reinforcing a bullish outlook. A stop-loss price is set below HK$248.40 . If the price falls below this l...
Read more

Live Webinar: Introduction to Tactical Allocation (The Basics of Trading)

Live Webinar: Introduction to Tactical Allocation (The Basics of Trading) The upcoming webinar is designed to equip new traders or someone who has experience trading the markets with the knowledge and tools to navigate the markets with a disciplined allocation process. Webinar Details: Title: Introduction to Tactical Allocation (The Basics of Trading) Date and Time:  12 Dec 24 (Thursday), 7.30pm Platform:  Live Webinar Registration: Click HERE What You'll Learn: An introduction to various financial markets and instruments Momentum and Fundemental Techniques Effective risk management strategy Steps to develop a personalized trading plan Who Should Attend: This webinar is perfect for: Individuals new to tactical allocation (trading) Those looking to enhance their financial literacy (in the area of tactical portoflio allocation) Anyone interested in understanding market dynamics Registeration:  Click  HERE (You will be lead to a SGX Academy registration website)
Read more