Stock of the day: American Express

As we discussed yesterday, the onset of a reversal in stocks is presenting some compelling selling opportunities, and one such opportunity is evident on American Express. This setup hinges on a false breakout above the orange resistance level. The price attempted to break above this resistance but failed to sustain that level, subsequently falling back below it yesterday.

This area, highlighted by the yellow rectangle on the chart, marks a false bullish breakout, a classic signal that the upward momentum has weakened. Now, with the price trading below the orange resistance—which has reverted back to being a resistance—the sentiment remains negative. As long as the price stays beneath this key level, the outlook is bearish, with a potential target aiming for the lows from August. This setup suggests a favorable selling opportunity, provided the current resistance holds.

Source: https://www.axiory.com/analytics/technical-analysis/stock-of-the-day-american-express