American Express (AXP) Stock Set to Rally 13%
American Express Company (NYSE: AXP) stock chart is showing trends that indicate a quick surge higher in the next few days or weeks.
Shares of the charge card company have had a tough time breaking out above the $102 to $103 price level, as indicated by the red resistance line in the chart below.
After a series of tests where the stock tried breaking out and ended up taking a downturn, shares are now actually showing a break through, and when they do, a quick 13% rally will likely take place. The back and forth pattern the stock has created is also making a triangle pattern, one that gives us a specific price target once shares break out.
Once the shares clearly break through the red resistance line, investors should look for the stock to hit $116 quickly. The price target of $14 above the red line on the chart comes from the height of the ascending triangle pattern – from the red line to the start of the green line. That’s roughly $14 per share. A $14 rally from current levels would be a 13% gain for the stock. Depending on how many shares you buy, you can really profit from this gain. Of course, this is all in hopes that AXP will break the ascending triangle with a rally and not take a downward turn.
For full coverage on American Express Stock and an analysis into how the resistance line tests are so crucial in this reading, view my AXP article on Investopedia.
Investing has consumed my life since college. While double majoring in finance and economics at the University of North Carolina at Greensboro, I founded the university’s economics club, joined the finance club and participated in the Chartered Financial Analyst research competition to represent our school.