Shares of American Express (AXP) have stayed strong in recent days as merchants, and of course traders, look forward to the lifting of international traffic restrictions from the pandemic. We looked at AXP on October 22, writing that "Traders could go long AXP on a shallow dip. Risk to $169 and $222 is our first price target."
Let's check on the charts again.
In this daily bar chart of AXP, below, we can see that prices for AXP made a new high in late September and then pulled back this month to approach the rising 0-day moving average line. The slope of the slower-to-react 200-day moving average line is positive.
The On-Balance-Volume (OBV) line dipped a little from September into October but remains in a longer-term four-month sideways trend. The Moving Average Convergence Divergence (MACD) oscillator is poised to cross to the upside again for a new outright buy signal.
In this weekly Japanese candlestick chart of AXP, below, we can see a positive picture. Prices are in a longer-term uptrend above the rising 40-week moving average line. The weekly OBV line is bullish and the MACD oscillator is close to a new buy signal.
In this daily Point and Figure chart of AXP, below, we can see a $228 price target.
In this weekly Point and Figure chart of AXP, below, we used a five box reversal filter. Here we can see a price target of $299. Let's round it up to $300.
Bottom line strategy: Traders could remain long AXP from our earlier recommendation. Keep stops at $169 still. Our price targets are the $222-$228 area and then $300.
