Chart of the Day: American Express Delivers for Investors
The stock has made a tremendous move up after coming under stress.
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You cannot keep a high-quality company like American Express AXP down for too long. That channel we drew in a couple months ago shows a decline from the highs. We see lower highs and lower lows as AXP moved from bullish to bearish in a slow descent.
But, as we know, trends change and this one happened quickly. A rise up to the top of the channel was a decision point. Buyers moved in and pushed AXP up and right near the all-time highs. A great move for this iconic brand.
However, with this latest move this stock is now overbought, and may pull back to the trendline drawn in the top pane. The ADX (pane 3) is re-starting its upward move, which means there is power building.
Money flow is back to bullish (bottom pane), and the candles in the top pane are blue, which the GoNoGo composite says that is a strong bullish condition.
Even a modest pullback here would be a good spot to add more shares. Watch for it.
We like AXP in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
At the time of publication, TheStreet Pro Portfolio was long AXP.
