AXP closes lower for the 2nd day in a row
American Express Company (AXP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AXP ended the month -1.97% lower at 93.32 after losing $1.33 (-1.41%) today, significantly underperforming the Dow Indu. (0.44%). Today's close at 93.32 marks the lowest recorded closing price since July 10th. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AXP as at Jul 31, 2020):
Friday's trading range has been $2.22 (2.35%), that's slightly below the last trading month's daily average range of $2.47. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AXP.
After having been unable to move lower than 92.50 in the previous session, the stock found buyers again around the same price level today at 92.23. The last time this happened on Wednesday, AXP actually lost -2.11% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to July's high at 97.90, upside momentum could accelerate should the market mark new highs for the month. As prices are trading close to July's low at 89.58, downside momentum might speed up should American Express mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for American Express. Out of 497 times, AXP closed higher 52.11% 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 59.36% with an average market move of 0.77%.