Chart of the Day: Seeing a Bit of Daylight in American Express

Earnings recently from American Express (AXP) were stronger than expected, but the stock fell on potential worries over consumer spending. In the past, that was worrisome for the company and other credit-card firms such as Mastercard (MA) and Visa (V) , but those worries have usually been a misconception. Recent earnings from those two names show robust spending, confirming what we heard from American Express during the prior quarter.

Travel is an area where American Express has a deep relationship with consumers and businesses. No doubt high fuel prices and consolidation (see: Spirit Air) are going to cause prices to increase, but if people are going to travel they will usually simply pay the price and go. Higher fees for Amex's cards don't seem to have a negative effect, which is better for the bottom line.

As for AXP chart, the stock has a budding uptrend, with higher lows but not higher highs yet. We can see this is not trending, but the candles are blue again so that is bullish for the chart.

MACD and stochastics are heading downward, which can be problematic if the trend doesn't move up. Money flow is bearish.

Most indicators are not supporting the price move, so we'll have to watch this carefully. Price always matters most.

We like American Express in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."

At the time of publication, TheStreet Pro Portfolio was long AXP.