American Express Company (NYSE: AXP) stock’s breakout analysis using a technical candlestick chart.
First, let us look at the larger time frame, monthly and weekly. Regarding long-term support, the chart shows that the 135 level is remarkable at the moment. It has not fallen below this level for a long time.
American Express declined from the 135-140 range in the past (year 2020), but later gained momentum after clearing it. Now this level is working as a support, which prevents the price from dropping further. The stock has bounced from here twice (year 2022).
Regarding price pattern, at the end of November last year, the stock broke out of a flag pattern, which is still ongoing. The upward flag pattern is a bullish signal. The dotted line you see on the chart represents this. Check the monthly time frame to see the clear flag.
According to the current scenario, NYSE: AXP is on its way to touch its all-time high of 200. The next big breakout move could come if the stock closes above its all-time high level. From there, the chances of opening the next range of 50 to 100 points will increase.
Analysis date: 23 January 2024, Tuesday.
About American Express Company (NYSE: AXP)
A global payments company that has been working since the last 170 plus years is headquartered in New York. With a market capitalization of $135 billion, it runs card issuing, merchant, and card network related services.
In the recent third quarter of 2023, the company exceeded expectations, reporting $11.4 billion in revenue and $2.15 earnings per share. This success is attributed to rebounding user spending, mostly in travel and entertainment, and investments in digital capabilities.
The company is included in the Dow 30 list. Upbeat about 2023, American Express raised its direction, projecting a 20% revenue growth and earnings per share between $8.60 to $9.10. The stock price rose by 34% in the past year.
Despite facing rivalry and regulatory risks, the company anticipates an optimistic viewpoint in 2024.
Return Calculation
| Year | January open | December close | % Change |
| 2019 | 93.91 | 124.49 | + 32.60 |
| 2020 | 124.66 | 120.91 | – 3.01% |
| 2021 | 121.30 | 163.60 | + 34.87 % |
| 2022 | 164.51 | 147.75 | – 10.19 % |
| 2023 | 149.54 | 187.34 | + 25.26 % |