AXP breaks below Tuesday's low
American Express Company (AXP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AXP ended Wednesday at 105.98 losing $0.70 (-0.66%) on high volume, underperforming the Dow Indu. (0.13%). Closing below Tuesday's low at 106.24, the stock confirmed its breakout through the prior session low after trading up to $1.55 below it intraday.
Daily Candlestick Chart (AXP as at Sep 16, 2020):
Wednesday's trading range has been $2.80 (2.62%), that's slightly above the last trading month's daily average range of $2.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AXP.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on September 4th, AXP lost -1.89% on the following trading day.
Prices are trading close to the key technical support level at 104.23 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 108.12 where further buy stops might get triggered. As prices are trading close to September's high at 109.03, upside momentum could accelerate should the share mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for American Express. Out of 226 times, AXP closed higher 53.54% 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 63.27% with an average market move of 0.72%.