American Express Company (AXP) gapped higher Friday and pushed up to new high ground on the heels of a strong earnings report. Let's see what is in store for the stock of the credit card company.
In this daily bar chart of AXP, below, we can see that prices have doubled in the past 12 months. Prices are firmly above the rising 50-day moving average line and above the rising 200-day line. The On-Balance-Volume (OBV) line looks like it is resuming its rise after a decline in August. A rising OBV line happens when buyers of a stock are acting more aggressive than the sellers. The Moving Average Convergence Divergence (MACD) oscillator is bullish and pointed higher.
In this weekly Japanese candlestick chart of AXP, below, we see a bullish picture. Prices are in a longer-term uptrend as they trade above the rising 40-week moving average line. The weekly OBV line has mirrored the price action and is close to making a new high. The MACD oscillator is ready to cross to the upside for a fresh buy signal.
In this daily Point and Figure chart of AXP, below, we can see an upside price target in the $222 area.
In this weekly Point and Figure chart of AXP, below, we used a five box reversal filter. Here the software suggests a longer-term price target in the $299 area.
Bottom line strategy: Traders could go long AXP on a shallow dip. Risk to $169 and $222 is our first price target.
