Chart of the Day: American Express Settles In
Here’s why the recent pullback is likely over.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
The recent pullback in American Express (AXP) shares looks to be over. We say that with some confidence as the stock recently bounced off the lower Bollinger band, from good prior support areas as the indicators became fully oversold. Now, oversold does not mean buy of course, but at some point the stock will get completely washed out of sellers. We think that time is now.
Look at stochastics and money flow at the bottom of the chart. These two indicators were falling for weeks but suddenly have turned higher.
We do not have a technical buy signal here, nor in the MACD, but that is also turning upward. Price is under pressure still but now we have candles in pink, which is just cautiously bearish on the GoNoGo composite of indicators.
There’s not much news to drive AXP this month but the company will report earnings in a month. Perhaps buyers step in before that report and after some clarity on retail sales and the economy.
We like American Express in TheStreet Pro Portfolio and rate it a One, or “buy at anytime.”
More Pro Portfolio:
- Closing Out This Position as Fed Rate Hike Odds Rise
- 26 Signals Across 9 Portfolio Themes
- Weekly Roundup: A Good Week to Lose Less as Market Stumbles
At the time of publication, TheStreet Pro Portfolio was long AXP.
