Credit card giant American Express Company (AXP) saw first-quarter earnings drop as credit provisions and expenses increased. The stock opened lower but has trimmed its losses as the trading day has progressed. Let's check out the charts and indicators.
In this daily bar chart of AXP, below, I can see that prices have "chopped" sideways the past four weeks before today's dip to retest the rising 200-day moving average line. The trading volume was declining the past four weeks, but it has surged higher today. The On-Balance-Volume (OBV) line made a low in December and shows improvement that suggests that buyers of AXP have been more aggressive than sellers the past three plus months. The Moving Average Convergence Divergence (MACD) oscillator has moved around the zero line the past year. The oscillator is below the zero line, but improving.
In this weekly Japanese candlestick chart of AXP, below, I can imagine a candle pattern with a lower shadow touching the rising 40-week moving average line. The weekly OBV line shows a rise from July. The MACD oscillator is above the zero line, but correcting.
In this daily Point and Figure chart of AXP, below, I can see today's decline. If prices recover enough today or Friday we could see prices make a column of Xes. Right now the software projects a downside price target in the $145 area.
In this weekly Point and Figure chart of AXP, below, I used close only price data. Here the software shows a price target in the $238 area.
Bottom line strategy: AXP is not out of the woods just yet but the rally back to the upside Thursday afternoon is promising.
