AXP- AMERICAN EXPRESS CO. ? Daily
Near Term Trend (Daily): Negative to Neutral
Wednesday's Close: $48.08 (+1.66 cents)
UPDATE: AXP was up 20% from the lows near the $42.00 region posted in March, as the stock traded as high as $53.80 on June 7th.
Noting this, four weeks ago, as the stock was trading above $52.00, we specifically stated, ?Near term support is $51.00 (see chart). Book profits against long positions only on a daily close below $51.00?. Subsequently, following our outlook, the Stock settled at $50.48 on July 27. This was the day to sell. If you did so, you preserved your capital as the stock had given back the 20% gains within two weeks.
Two weeks ago, we stated, ?The $42.00 region appears to be a near term level of support, therefore, I would go long AXP at current levels ($43.00) for 30% of your normal position size?. If you went long on our recommendation, you are up $5.00 at this juncture. Wait for a pullback before you commit additional capital to the long side.
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