Hello friends! The American Express Company also called as AMEX by credit card holders or AXP as listed in the New York Stock Exchange is most known for its charge and credit card products. AMEX is the main competitor of Visa and MasterCard credit cards. Anyway, its stock price is currently at $38.28 as it dropped 2% yesterday going against the 193.00 point gain of the Dow Jones Industrial Average. This could be caused by analysts’ expectation of a poor 3rd quarter earnings report coming out this October 21. In my technical analysis, the decline could further continue if the stocks breakdown from the neckline of what could be a head and shoulders setup. If it does, the price could head all the way lower until it finds some support around $34.26. If it further drops below that marker, the next support could be $31.69. If the breakdown doesn’t take place and the stocks decide to move higher, the significant resistance it could encounter is $43.93. If the stocks passes through above that level, the next resistance could be $45.68.

The US ADP Non-Farm Employment Change data, from 10k previously unexpectedly dropped to -39k when it was released a few moments earlier. This could have a negative impact on the investors/traders’ sentiments towards the US market  as well as for American Express in the short term.