Chart of the Day: Now Might Be a Good Time to Buy American Express
The big credit card company just continues to fall, but that could spell opportunity for those looking to pick up shares.
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American Express: Do Leave Home Without It
Whether it is AI or a potentially slowing economy (and spending) it appears American Express (AXP) has become the example of the bears' ire. The stock has been punished since peaking in late 2025, falling some 20% on very heavy volume. Each day it seems a new "killer" is going after credit card companies like Visa (V) and Mastercard (MA) , and, of course AXP gets rounded up into that group as well. But the reason why we hold this name in the Pro Portfolio is because it is very different than the others. Remember "membership has its privileges." We think this drop might be a good spot for you to add more shares; we have plenty at the moment.
Regardless of how we like this name, the price action matters most. For AXP, it has clearly been bearish as the stock is nearly in its own bear market. That may not mean too much if the rest of the market has not fallen as much, it simply means AXP has very poor relative strength. We can see the indicators are mostly bearish the ADX is up up and shows the current trend is strong, and we know it is bearish.
The moving average convergence divergence in the second pane looks washed out, but money flow at the bottom is starting to diverge bullishly, something positive to watch for. Recent volume trends are turning neutral, and the line in the sand that I drew for upside is about $320. Get above there and the stock can move further up.
We like American Express in Portfolio and rate it a "Two," or "stockpile on pullbacks. "
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The Pro Portfolio is long American Express.
