Trading Idea - Is American Express close to Resistance?

Published on Wednesday, 08 September 2010 07:28 Written by Christopher Lynn

New York, September 8th (TradersHuddle.com) - Shares of American Express, Inc. (NYSE:AXP) are trading very close to calculated resistance at $41.83 with the current price action closing at just $40.09 placing the stock near levels that make it difficult to buy.

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' current stock range is defined by current calculated support defined at $39.14 and by the resistance level at $41.83, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for American Express, as the stock is well above support, however, as the stock pulls back towards $39.14 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $41.83 then traders will get an opportunity to enter American Express stock by establishing a position as the stock moves to a higher range.