September 1, 2010

American Express Company (AXP) Bearish?


American Express Company also called as AMEX or AXP in the New York Stock Exchange is most known for its charge and credit card products. Its main competitors are Visa and MasterCard credit cards. Anyway, the American Express stock price is currently at $39.87 but could go lower as there could be a head and shoulders setup forming on its stock chart based on my technical analysis. This will be confirmed once the stocks breakdown from the neckline of the head and shoulders formation. If it does, the stock price could head all the way down until it finds some support around $34.26. If it further drops below that marker, the next support could be $31.69. If the breakdown doesn’t take place and the stocks decide to move higher, the resistance it could encounter is $45.68. If the stocks further goes above that level, the next resistance could be $49.00-50.00 for this stock pick.

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