Stock of the Day: American Express

American Express is currently in a technically negative position. On the daily chart, we can clearly identify a head and shoulders formation marked with green rectangles. This structure has already been activated.

The red neckline of the pattern was broken a few days ago, generating a formal sell signal. In addition to that, the stock also broke below a blue ascending trendline that had been supporting price for months. With both the neckline and the uptrend line violated, two major technical supports are no longer in play.

Even though Friday printed a relatively strong bullish candle, that move looks more like a corrective bounce rather than the beginning of a reversal. As long as price remains below the former neckline, which now acts as resistance, the bearish structure stays valid.

From a technical standpoint, sentiment remains negative. The breakdown is confirmed, structure favors sellers, and the probability of new midterm lows remains elevated unless the stock manages to reclaim the broken resistance decisively.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-american-express-2-1