Chart of the Day: American Express Builds Energy for Its Next Move
AXP enters a period of rest and consolidation before we find out where it goes next.
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There are times during a quarter cycle when a stock is on fire and just cannot be stopped going up, and there are times when the opposite occurs and it appears the stock is going down the drain. Those are brief moments, though. Often a stock is resting or consolidating recent gains or losses, building some energy for the next move, whatever that may be. That is what we see with American Express (AXP), as we await direction from the chart.
Most of the indicators are neutral here. The MACD is flat, ADX is heading to zero (meaning the trend is very weak), and money flow has stalled out as has the stochastics. We could say Amex has found a price level that is satisfactory to the bulls and the bears.
Parabolic SAR (stop and reverse program) remains bullish, but volume trends are declining as the stock moves sideways. Candles are teal (cautiously bullish) but that could change quickly. There is just no interest in buying or selling the name at this time, but eventually we see a move coming.
We like American Express in TheStreet Pro Portfolio and rate it a One, or “buy at anytime.”
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At the time of publication, TheStreet Pro Portfolio was long AXP.
