When Will American Express Move Up Again?

The American Express (AXP) retraced back up almost 400% from its low of 2009, and now it looks like it is on the decline again. I wonder when will AXP be moving back up again and hopefully make a new high?

After the 4th quarter earning, the stock price pulled back and now the P/E is slightly above 15. Despite some challenges due to current economic conditions, AXP business is still looking strong. As long as the industry continues to improve, AXP will turn the corner and head higher along with its earning. By the way, AXP is one of top holdings by Warren Buffett.

Looking at the stock chart below, there was a strong upward support level that was broken around the time of earning release. Now, this same support level serves as a major resistance. There is another support around $30 range and it seems as though AXP is headed that direction. I recommend $30 as a good opportunity to go LONG on AXP.