American Express Co - (AXP) - October 23, 2023 (Daily Stock Report)

by SIACharts.com

The Financials sector continues to struggle with rising treasury yields. Despite a positive earnings report and an upbeat earnings call, credit card provider American Express (AXP) fell 5.4% on Friday.

American Express has been trending downward within the SIA S&P 100 Index Report Since March. It re-entered the Red Unfavored Zone in September and since then it has declined 11.3%.

AXP is currently in 64th position after falling 5 spots on Friday and dropping 31 places in the last month. For most of the last year, American Express (AXP) has been trending sideways between approximately $142.00 and $178.00. Resistance at the top of this range was confirmed back in July, and since then, the shares have been under distribution, staging a downswing within that range.

Friday’s market action (circled) was particularly ugly. Despite a positive earnings report, the shares gapped down on the open, the bulls tried to mount a comeback, this failed near $155.00, confirming a downtrend resistance line, then the bears took over and drove the shares to a lower close near the lows of the day, all on an increase in volume.

Initial support appears at the current channel bottom near $142.00. A breakdown there would confirm the start of a new downtrend with next potential support near $130.00, then a measured $106.00. Initial upside resistance appears near the $150.00 round number, then Friday’s intraday high near $155.00.

Back in July, American Express (AXP) failed to break though resistance near $180.00 and since then it has been under distribution with its technicals deteriorating significantly. Over the last three months, the shares have snapped an uptrend line, and staged two bearish Double Bottom breakdowns which has combined into a Bearish Catapult.

Currently, AXP is testing a long-term 45-degree support line near $136.55, which if broken, would signal the start of a significant new downtrend. Next potential downside support after that appears as a previous low near $131.25, followed by $123.65 and $107.65, both of which are based on horizontal counts. Initial resistance on a rebound may appear near the $150.00 round number, or $153.80 based on a 3-box reversal.

With a bearish SMAX score of 2, AXP is exhibiting weakness against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Total
0
Shares
Previous Article

Military conflicts haven’t derailed the long-term growth of stocks

Next Article

What happened to ESG stocks?

Related Posts
Subscribe to AdvisorAnalyst.com notifications
Watch. Listen. Read. Raise your average.