AXP Bounces Off Lower Bollinger Band as Momentum Turns Upward
American Express (AXP) shares have been under pressure lately, but it seems that the recent pullback may be over.
The stock has bounced off the lower Bollinger band and found support from prior levels as indicators became oversold. However, being oversold does not necessarily mean it's time to buy, but at some point, the stock will reach a level where sellers are exhausted.
Technical indicators such as stochastics and money flow have turned higher after weeks of decline. Although there is no technical buy signal yet, the MACD indicator is also showing upward momentum. The price remains under pressure, but recent candles on the GoNoGo composite of indicators have shifted to a cautiously bearish tone.
American Express will report earnings in a month, and it's possible that buyers may step in before then for clarity on retail sales and economic conditions.