Near Key Levels - American Express

Published on Thursday, 09 September 2010 05:04 Written by Danny Miller

New York, September 9th (TradersHuddle.com) - Shares of American Express, Inc. (NYSE:AXP) closed the trading session at $40.07 near its 50 day and 200 day moving averages currently set at $42.0292 and $41.3409 respectively. American Express' price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

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.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $39.14 and calculated resistance at $41.83. These levels should be watched by traders, as they provide insight into the latest price dynamics in American Express shares.

Traders should evaluate their options if they want to establish a position on American Express given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.