Benzinga
Published Feb 28, 2024 21:27
Updated Feb 28, 2024 22:40
American Express Hits All-Time High: Chart Points To Upcoming Bull Battle At Resistance Line
Benzinga - by Piero Cingari, Benzinga Staff Writer.
Shares of American Express Company (NYSE:AXP) rose to a record high of $219 during the intraday session on Wednesday, buoyed by a strong bullish momentum.
The credit card issuer is currently experiencing a streak of six consecutive weeks in the green, with 16 positive weeks out of the last 18.
The surge, initiated in late October, has now propelled the stock upwards by 55%, representing its most robust four-month growth since March 2021 and the second-strongest since November 2009.
Recent News Mixed, AXP Moved Higher On Stronger 2024 Guidance Despite a lack of significant new catalysts in recent news, stock prices have still been on the rise, primarily fueled by the optimistic outlook presented in the latest earnings reports.
Following the fourth-quarter earnings release and adjustments in analysts’ recommendations, the median analyst price target sits at $218, precisely matching current market prices.
The forward P/E ratio stands at 17x, consistent with both the three-year and five-year averages.
Read also: Best Credit Card Offers Right Now
Technical Outlook Given the limited insights from recent news and fundamentals, technical analysis might offer more value in this situation.
Examining the long-term weekly chart reveals that American Express shares are nearing a significant dynamic resistance line, connecting highs from October 2000 to February 2022.
This major resistance line is about 4 percent away from current levels, around $228 to $229 per share.
As a result, we may anticipate further upward momentum for American Express in the upcoming sessions, potentially leading to a critical resistance test for investors.
A successful break above this resistance level could propel the stock into uncharted territory, likely prompting profit-taking behaviors among bullish investors amid extreme overbought conditions.
Read now: Stocks Fall Ahead Of Fed’s Inflation Data, UnitedHealth Sinks, Bitcoin Tops $61,000: What’s Driving Markets Wednesday?
Photo: Shutterstock
Latest Ratings for AXP
Feb 2022 | Daiwa Capital | Upgrades | Hold | Buy |
Feb 2022 | Morgan Stanley | Maintains | Overweight | |
Jan 2022 | Deutsche Bank | Maintains | Buy |
View the Latest Analyst Ratings
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