AXP isn’t a trade idea right now but one that I’ll be watching over the next few days for possible cues to the MA & V trades/setups. AXP has been active in AH trading today after pre-announcing earnings estimates and announcing job cuts. Like most other stocks right now, I’m more interested in longer-term charts than the recent noise on this one so it will be interesting to see if AXP will be able to surmount the blue resistance line on the weekly chart below. If so, the next resistance level would be the top of the orange ascending channel and if not, I have drawn a grey sub-uptrend line within the channel that could trigger a sell-off if broken.
Zooming into the daily chart, we see the same old, same old… AXP, like so many other stocks right now is exhibiting short-term bullish price action while running into key longer-term resistance with the RSI registering overbought readings that have lead to significant corrections in the past (blue circles on daily chart). My thoughts on AXP are the same as the broad market: I don’t care if this stock is going 30% higher from here and I could care less how bullish the short-term price action is. The stock can go there without me as the risk/reward to being long, especially to establishing a new long position here is about as poor as it gets from a technical perspective (due to the aforementioned reasons). Daily & weekly charts below.
Regarding V & MA, both did exhibit some bearish price action today, closing down about 0.8% against a decent rally in the broad market. However, we still need to see additional technical evidence to help confirm a likely reversal and new short entry or add-on.
