Select the account you'd like to open

Stock watch

US Equities Technical: Medium-term momentum has turned bullish for American Express

american express

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).

Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.

Sign up for market update emails