Giles Coghlan LLB, Lth, MA
Financial Source
American Express earnings are coming up before the open on Thursday. The company could be poised to benefit from a rebound in travel and dining, as well as its still strong premium consumer contingent in its crucial US market. Its network volume is forecasted by Bloomberg to grow 14% from 12% in the previous quarter which could be faster than its rivals Visa and Mastercard.
Technically, American Express is consolidating into a symmetrical triangle pattern above the 100 and 200EMA on the daily chart and the seasonals are supportive for gains in the second half of August.
Is this a perfect setup for a breakout higher?
Major Trade Risks: The major trade risk here would be if American Express earnings disappoint and/or if sentiment turns negative for US stocks on more aggressive Fed hiking expectations.
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