US Equities Technical: Medium-term momentum has turned bullish for American Express

US Equities Technical: Medium-term momentum has turned bullish for American Express

Medium-term technical analysis (1 to 3 months)

(click to enlarge chart)

Time-stamped: 26 Jul 2022 as at 11:00 am SGT

Source: CMC Markets

Integrated technical analysis (graphical, momentum, Elliot Wave/fractals) suggests that its major downtrend phase from its 16 February 2022 all-time high of 199.56 that recorded a plunge of -33% to print an intraday low of 134.16 on 14 July 2022 may have reached an inflection level for a potential corrective rebound to put a pause on its current major 5-month bearish impulsive down move sequence.

Key Levels (1-3 months/AXP)

Intermediate support: 142.15

Pivot (key support): 133.30

Resistances: 160.90 & 170.00/174.60

Next support: 115.90/113.70

Directional Bias (1-3 months/AXP)

Watch the 133.30 key medium-term pivotal support to maintain a further potential up move within this ongoing 1 to 3 months of corrective rebound phase towards the next resistance at 160.90 and a break above it may open up scope for a further push up towards 170.00/174.60 major resistance zone.

On the flip side, failure to hold 133.30 with a daily close below it invalidates the corrective rebound scenario for a continuation of the impulsive down move sequence of its major downtrend phase towards the next support at 115.90/113.70 (swing low areas of 21 December 2020/27 January 2021 & 50% Fibonacci retracement of the prior major uptrend phase from 18 March 2020 low to 16 February 2022).

Key elements (AXP)

  • The daily RSI oscillator has shaped a bullish breakout above its key corresponding resistance at the 50% and has yet to reach its extreme overbought level with a prior bullish divergence signal flashed out at its oversold region on 14 July 2022. These observations suggest a revival of medium-term upside momentum.
  • The 170.00/174.60 major resistance zone is defined by a confluence of elements; the descending trendline from the 16 February 2022 all-time high, the 200-day moving average, and the 61.8% Fibonacci retracement of the major downtrend phase from 16 February 2022 high and 14 July 2022 low.
  • Relative strength analysis has indicated the outperformance of AXP against its Financials sector (XLF).

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