AXP still stuck within tight trading range
American Express Company (AXP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AXP ended the week 8.65% higher at 89.33 after edging lower $0.50 (-0.56%) today on low volume, underperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AXP as at May 22, 2020):
Friday's trading range has been $1.73 (1.93%), that's below the last trading month's daily average range of $3.18. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AXP. Prices continued to consolidate within a tight trading range between 85.92 and 91.43 where it has been caught now for the whole last trading week.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 91.43 where further buy stops could get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for American Express. Out of 294 times, AXP closed higher 52.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.84% with an average market move of 0.68%.