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Technical analysis

American Express - Chart Analysis - Week Ahead 31 October 2022


Check out the trading idea of the week below, by your friendly, neighbourhood market analyst!

Trading Idea of the Week

NYSE:AXP - American Express Company - BULLISH BIAS

  • Key levels on the chart - consider taking trades from key support/resistance zones.
  • Performance in the most recent quarter remained strong, with record levels of revenue and cardholder spending, a reflection of the growing customer base. Cardholder spending was up 30% from a year prior on an FX-adjusted basis, spearheaded by increases in travel and entertainment spending, which surpassed pre-pandemic spending for the first time in April.
  • Quarterly revenues were up 31% on a year-on-year basis, reaching US$13.4 Billion yet quarterly EPS was down $0.23 to $2.57 off the back of increased customer engagement costs and operating expenses.
  • American Express added 3.2 million new proprietary cards in the quarter, driven by heightened demand for their premium product offerings. Card numbers for their U.S. Consumer Platinum, Gold and Delta co-brand Cards each reached all-time highs in the quarter.
  • American Express recently boasted of ‘exceptional’ credit performance, with delinquencies and write-offs near historical lows, but it is yet to be seen if they’ll experience a reversal of fortunes as households are plunged into hardship due to the rising cost of living.

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