Chart of the Day: American Express Breaks Free
A solid move up and out past recent resistance sets this one up for a more substantial move higher.
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There's no sleeping on the American Express AXP chart, even as it was "boring" investors to death as of late. The breakout here this week on better volume is extremely bullish, and with the indicators looking bullish as well, we see higher prices ahead for Amex.
The stock had been treading water after a nice push higher, with lower volume as the stock moves sideways. That is what you like to see in a consolidation pattern.
But buyers continue to favor the stock and each dip over the last month has been bought up. Now price action is above that range, and stochastics are bullish so momentum is swinging upwards.
Further, ADX is strong, which tells us not the direction, but the strength of the trend. It's clearly bullish, and Chaikin money flow is still bullish. If you're light on this name you want to start adding more shares.
We like American Express in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long AXP.
