In his first "Executive Decision" segment of Wednesday's Mad Money program, host Jim Cramer sat down with Steve Squeri, chairman and CEO of American Express (AXP) , ahead of the company's annual investor day.
Squeri said that technology and customer service have been driving the growth at the company, which has led to the 18% to 20% revenue growth it is forecasting this year.
When asked about travel, Squeri said that consumer travel has already started to return, and with so many remote employees these days, he expects a new segment of business travel to emerge as remote workers meet with their teams in person from time to time.
Let's travel to AXP's charts now.
In our January 26 review of AXP we wrote that "Multiple sell-side firms upgrading a stock can be a powerful influence. The $64,000 question is whether AXP can overcome some chart resistance from October/November in the $180-$190 area. Traders who anticipate a breakout could go long AXP here but risk only $165 if the rally fizzles."
In the daily bar chart of AXP, below, we can see that the shares continued to rally from late January into February. The rally fizzled out in early March and traders should have been stopped out on the decline unless they got profits at the first sign of weakness. Prices broke below the 50-day and 200-day moving average lines but did not break the January low. Another rally attempt is underway. AXP is back above the moving averages.
The daily On-Balance-Volume (OBV) line has turned higher, suggesting that buyers are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is poised to cross to the upside for a cover shorts buy signal.
In the weekly Japanese candlestick chart of AXP, below, we can see a bottom reversal pattern over the past three weeks -- a red (bearish) candle followed by a hammer and confirmation with a bullish candle. The Japanese technique of spotting reversals means that prices could go upwards or they could turn sideways. Big difference to a trader looking for long ideas. Prices are above the rising 40-week moving average line.
The weekly OBV line has moved up and down with the price action and the MACD oscillator is above the zero line but struggling for a clear direction.
In this daily Point and Figure chart of AXP, below, we can see prices rallying (column of X's) after reaching a downside price target of $161.
In this weekly Point and Figure chart of AXP, below, we can see a potential upside price target of $221.
Bottom-line strategy: The up-and-down swings of AXP the past few months are making it difficult for me to feel confident in recommending purchase of the shares. I would stand aside for now until the patterns become clearer.