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

Palantir Technologies Inc PLTR: Technical Rebound at Sight After US Broad Market Stabilises

  Palantir Technologies Inc. (PLTR) USD86.24 Palantir (PLTR) posted a bullish reversal, closing above the 13-day SMA (83.56) with significant volume expansion. This signals potential momentum strength in the near term. First key resistance zone between the 50% and 61.8% Fibonacci retracement levels (USD 99.85 – 105.79), which could present selling pressure. Disclaimers apply
Read more

DBS Group Holdings (D05) and Straits Times Index (STI): Technical Change of Momentum

         DBS Group Holdings (D05) and Straits Times Index (STI):  Technical  Change of Momentum  Recent price developments in DBS Group Holdings (SGX: D05) and the Straits Times Index (STI) signal a critical inflection point. Both instruments have breached established ascending trendlines, suggesting a potential reassessment in investor sentiment and market trajectory.  DBS Group Holdings (D05) Price Dynamics:  DBS has decisively broken below its ascending trendline, closing at SGD 44.23, registering a 3.53% decline. The price action underscores weakening upward momentum and raises the probability of an extended correction phase. Key Technical Levels: 38.2% Fibonacci retracement: SGD 41.45 50% Fibonacci retracement: SGD 39.78 61.8% Fibonacci retracement: SGD 38.12 Full retracement: SGD 32.72 Outlook:  The breach beneath the trendline suggests an erosion of bullish conviction. Immediate attention should be on the 38.2% retracement le...
Read more

Week Ahead: US Indices Momemtum in Question

    Week Ahead: 10 March 2025 Key event this week was  U.S. indices technically closed below the key 30-week (or 150-day) moving average . For the upward trend to continue, the indices need to reclaim levels above the moving averages. Remaining below the 30-week (or 150-day) moving average could indicate that the upward trend has reversed downward. However, in the short term, we expect a rebound as the indices trade near their respective support levels. Medium Term: S&P 500 (SPX):  The S&P 500 broke below its key upward trendline, which had been established since October 2023. In the longer term, we expect the index to trade sideways or move in a downward direction. In the short term, we anticipate the S&P 500 will find support at the 5,700 level and could rebound to test the 5,860 and then the 5,966 resistance zones. Straits Times Index (STI):  The technical trend remains bullish. We maintain a constructive outlook while staying vigilant for any sig...
Read more