In the first Executive Decision segment of his "Mad Money" program Monday, host Jim Cramer spoke with Steve Squeri, chairman and CEO of American Express (AXP) .
Squeri said the consumer is looking a lot better than expected coming out of the pandemic. Credit debt is down, personal savings are up and there's a lot of pent-up demand to get out and spend. Even in the beleaguered travel industry, Squeri reported that May's bookings are 95% of what they were in May 2019.
Let's check and see what the charts of AXP look like. Our last review of the charts was on April 27, when we wrote, "Even if you do not have an American Express card, you might want to go long AXP at $152.44 or higher. Risk to $139 for now. $171 and then $229 are our price targets."
In this updated daily bar chart of AXP, below, we can see a bullish setup. Prices are in an uptrend and trading above the rising 50-day and 200-day moving average lines. The trading volume is steady and the On-Balance-Volume (OBV) line has risen steadily from late January. A rising OBV line tells us that buyers of AXP have been more aggressive, with heavier volume traded on days when AXP has closed higher. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for much of the past 12 months but recently crossed to a take profit sell signal.
In this weekly Japanese candlestick chart of AXP, below, we see a positive picture. Prices are in a longer-term uptrend above the rising 40-week moving average line. I do not see a top reversal pattern yet. The OBV line stalled in May but remains in a longer-term advance. The MACD oscillator is bullish.
In this daily Point and Figure chart of AXP, below, we see a potential upside price target of $200. A nice round number.
In this weekly Point and Figure chart of AXP, below, we see a tentative target of $229.
Bottom line strategy: Traders who are long AXP from April should continue to hold those positions. Raise stop protection to $154 from $139. Our targets are $171, $200 and then $229.