AXP closes within previous day's range after lackluster session
American Express Company (AXP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AXP finished the month 0.14% higher at 95.20 after edging higher $0.68 (0.72%) today on low volume, slightly underperforming the Dow Indu. (0.85%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AXP as at Jun 30, 2020):
Tuesday's trading range has been $2.03 (2.16%), that's far below the last trading month's daily average range of $4.02. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AXP. Prices continued to consolidate within a tight trading range between 92.45 and 98.27 where it has been caught now for the whole last trading week.
In spite of a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 25th, AXP actually lost -4.53% on the following trading day. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
Prices are trading close to the key technical resistance level at 97.85 (R1). After having been unable to move lower than 93.34 in the previous session, the stock found buyers again around the same price level today at 93.57.
American Express shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the nearby swing low at 92.45 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for American Express. Out of 689 times, AXP closed higher 52.25% 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 61.54% with an average market move of 0.76%.