Last month, credit card company American Express (AXP) returned to the Green Favored Zone in the SIA S&P 500 Index Report from a two-month dip into the yellow zone. AXP continues to climb up the rankings and yesterday it returned to the Top 10 for the first time since August, finishing in 8th place, up 4 spots on the day and up 30 positions in the last month.
Since successfully retesting support in the $150s last month, American Express (AXP) has been under renewed accumulation. Starting with a high-volume bounce that regained the 50-day average, the shares had been climbing within their previous $150-$185 range for several days, snapping a downtrend line along the way. Yesterday the shares blasted through the top of the channel to a new all-time high, signaling the start of a new advance and the end of a consolidation phase.
Measured moves from recent trading ranges suggest potential upside resistance near $216 and $220. Initial support appears at breakout points near $185 and $175.
A major breakout is underway in American Express (AXP) shares which broke out to a new all-time high yesterday. The shares had been on the rebound since a November correction was contained by support at a previous breakout point in December and had already completed a bullish Double Top pattern. Yesterday’s breakout ended two months of sideways consolidation and signaled the start of a new advance with a bullish Spread Double Top breakout.
Next potential upside resistance appears near $216.50 where multiple vertical counts converge, then $229.75, where multiple horizontal counts align. Initial support appears near $177.60 based on a 3-box reversal.
With a perfect SMAX score of 10, APX is exhibiting strength across the asset classes.
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