American Express Breaking Out?

Published on Friday, 12 March 2010 17:52 Written by Christopher Lynn

New York, March 12th (TradersHuddle.com) - Shares of American Express, Inc. (NYSE:AXP) closed the trading session at $40.76 just above calculated resistance at $40.34 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

American Express Company is a global payment and travel company. The Company's principal products and services are charge and credit payment card products and travel-related services offered to consumers and businesses around the world. American Express is based in New York and was founded in 1850.

American Express' stock was trading in a well defined range with support at $37.05 and resistance at $40.34, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that American Express' stock is still near the broken resistance level, traders will be focusing on $40.34 to see if the stock holds the breakout without rolling over.