American Express – NYSE:AXP – SELL

American Express – NYSE:AXP – SELL

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AXP Drop it like its hot.

American Express has had a strong run over the last year seeing prices rally from the low $50s mark to above $95. Back on the 31st of July, AXP broke its 200 day MA, and has since been consolidating. Confirmation of a lower move will be a close below 85.75 (green horizontal line). Once this is taken out look for the 61% retracement to be tested followed by the wide open gap at 76.75.

If you're long AXP it would be wise to begin hedging your position against further declines.

If you're looking to short AXP, place a stop just above the 200 day MA and have your first target at 80.90. Your second target can be 76.75. The risk reward ratio is definitely in your favor on this trade.

Remember when shorting and trading in general, stay focused to the changing conditions.

Happy Trading

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