October 6, 2010
Stocks Of American Express Bound To Drop Soon??
The stock price of American Express Company (AXP) is currently at $38.28 as it dropped 2% yesterday going against the 193.00 point gain of the Dow Jones Industrial Average. This could be caused by analysts’ expectation of a poor 3rd quarter earnings report coming out this October 21. In my technical analysis, the decline could further continue if the stocks breakdown from the neckline of what could be a head and shoulders setup. If it does, the price could head all the way lower 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 significant resistance it could encounter is $43.93. If the stocks passes through above that level, the next resistance could be $45.68.
The US ADP Non-Farm Employment Change data, from 10k previously unexpectedly dropped to -39k when it was released a few moments earlier. This could have a negative impact on the investors/traders’ sentiments towards the US market as well as for American Express in the short term.
This was my stock pick last month. Kindly check my previous post (here).