Powerful Technical Combination Signals AXP Is a ‘Buy’

by Sam Collins | October 18, 2013 1:08 am

American Express (AXP[1]) — This investment-grade global credit card and travel-related services company broke from a five-month consolidation on heavy volume Thursday.

Following the close Wednesday, the company reported third-quarter earnings of $1.25 per share, surpassing consensus estimates of $1.22, and up 15% from $1.09 in 2012. S&P’s 12-month target for the stock is $96.

Technically, AXP executed a high-volume breakaway gap from a quadruple-top, and MACD flashed a buy signal. This combination should result in a trading target of $86. And it is likely that long-term investors will see the stock hit S&P’s 12-month target of $96.

AXP Chart
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Chart Key[2]

  1. AXP: http://studio-5.financialcontent.com/investplace/quote?Symbol=AXP
  2. [Image]: https://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

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