US Equities Technical: Medium-term momentum has turned bullish for American Express
Medium-term technical analysis (1 to 3 months)(click to enlarge chart)
Time-stamped: 26 Jul 2022 as at 11:00 am SGT
Source: CMC Markets
Integrated technical analysis (graphical, momentum, Elliot Wave/fractals) suggests that its major downtrend phase from its 16 February 2022 all-time high of 199.56 that recorded a plunge of -33% to print an intraday low of 134.16 on 14 July 2022 may have reached an inflection level for a potential corrective rebound to put a pause on its current major 5-month bearish impulsive down move sequence.
Key Levels (1-3 months/AXP)
Intermediate support: 142.15
Pivot (key support): 133.30
Resistances: 160.90 & 170.00/174.60
Next support: 115.90/113.70
Directional Bias (1-3 months/AXP)
Watch the 133.30 key medium-term pivotal support to maintain a further potential up move within this ongoing 1 to 3 months of corrective rebound phase towards the next resistance at 160.90 and a break above it may open up scope for a further push up towards 170.00/174.60 major resistance zone.
On the flip side, failure to hold 133.30 with a daily close below it invalidates the corrective rebound scenario for a continuation of the impulsive down move sequence of its major downtrend phase towards the next support at 115.90/113.70 (swing low areas of 21 December 2020/27 January 2021 & 50% Fibonacci retracement of the prior major uptrend phase from 18 March 2020 low to 16 February 2022).
Key elements (AXP)
- The daily RSI oscillator has shaped a bullish breakout above its key corresponding resistance at the 50% and has yet to reach its extreme overbought level with a prior bullish divergence signal flashed out at its oversold region on 14 July 2022. These observations suggest a revival of medium-term upside momentum.
- The 170.00/174.60 major resistance zone is defined by a confluence of elements; the descending trendline from the 16 February 2022 all-time high, the 200-day moving average, and the 61.8% Fibonacci retracement of the major downtrend phase from 16 February 2022 high and 14 July 2022 low.
- Relative strength analysis has indicated the outperformance of AXP against its Financials sector (XLF).