Credit card giant American Express (AXP) is a member of the Dow Jones Industrial Average (DJIA) and a major sell-side firm (and former DJIA member) downgraded the stock to a "sell" from "neutral" (hold). In our last review of AXP on July 12 we wrote that "The charts of AXP do not inspire confidence. Avoid the long side of AXP as further declines could unfold in the weeks ahead."
Let's see how the charts look today.
In the daily bar chart of AXP, below, we can see that the shares have been in a downward trend since February. A fundamental sell recommendation is coming after a long decline. Prices made a new 52-week low in early trading Thursday but we could see a key reversal day and a higher close. The slope of the 50-day and the 200-day moving averages are negative.
The daily On-Balance-Volume (OBV) line shows weakness from early August but it has not made a new low for the year and is thus showing us a subtle bullish divergence. The Moving Average Convergence Divergence (MACD) oscillator is bearish.