Chart of the Day: American Express Offers a Nice Entry Point Before Earnings
On Friday the company will release their quarterly results and the setup looks bullish.
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There's plenty of talk about a consumer that is slowing down their spending, but don't tell that to American Express (AXP) . The company has been growing their membership for years and a recently announced rate hike in their card does not seem to bother its membership. That is truly remarkable, but the card is for members who like to use it and take advantage of its many benefits. We should see a good earnings report Friday morning.
As for the chart, the stock recently dipped from all-time highs and is in a nice position to add more shares. That pullback lasted about 10 days and now we find the stock is making its way higher.
Recent earnings reports saw AXP pushing much higher, then the selling occurred. This setup is much better for the bulls, with a more cautious approach. The company often delivers strong earnings and we expect to see nothing less Friday.
Money flow is poor, the moving average convergence/divergence (MACD) is starting to turn higher and the recent bounce off the 100-day moving average is often when AXP makes a bold move higher.
We like AXP in TheStreet Pro Portfolio and look for it to continue higher, rating it a Two, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long AXP.
