American Express shares drop nearly 4% after Meitav Investment House Ltd. trims stake

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American Express drops 3.95% to $335.77

Highlights

Meitav Investment House cut its American Express stake by 44.7% in Q1, signaling significant institutional outflows.
This notable reduction may have pressured AXP shares amid broader session weakness and affected market sentiment.
AXP trades under major moving averages, faces bearish momentum, and is expected to consolidate between $324.69 and $341.76 with downside risk prevailing.

Institutional stake reduction heightens selling pressure and weakens sentiment

Meitav Investment House Ltd. reduced its holdings in shares of American Express Company (NYSE: AXP) by 44.7% during the first quarter, as disclosed in its most recent filing with the U.S. Securities and Exchange Commission, according to MarketBeat. Large reductions by institutional investors can increase the perceived supply of shares and weigh on overall market sentiment. This action may have contributed to downward pressure on AXP, aligning with broader weakness observed in today’s session.

Bearish momentum persists as AXP breaches major technical supports

AXP trades below the 20-day moving average at $350.76 and the 50-day moving average at $346.3 on the primary timeframe, with the long-term 200-day moving average at $338.37 remaining overhead. The Ichimoku Kijun on the daily chart stands at $348.49, offering immediate resistance. Momentum indicators show a bearish configuration: Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) continue to signal a sell bias. Relative Strength Index (RSI) is at 29.02, while Stochastic RSI and Commodity Channel Index (CCI) confirm oversold conditions. Bull/Bear Power points to strong seller dominance intraday, and the Awesome Oscillator supports the negative momentum, all indicating heavy selling activity without meaningful divergence.

Downside risk elevated as price action remains rangebound

Over the next several trading days, AXP is expected to consolidate within a range of $324.69 to $341.76 based on prevailing volatility. The probability of a downward move is estimated at 68%, while the chance of a rebound stands at 32%. In the baseline scenario, price action is likely to remain bound by these levels. A sustained break above immediate resistance could open the path to higher levels, while a bearish extension below support may accelerate further downside.

Viktoras Karapetjanc, expert at Traders Union, believes that American Express faces continued selling pressure as key institutional outflows dent sentiment. He sees that weak technical readings and reduction in holdings by Meitav Investment House Ltd. reflect a reinforced negative bias in the short term. However, Karapetjanc maintains an optimistic outlook, noting the oversold readings may spark a technical rebound if immediate resistance is cleared. "Despite current headwinds, I believe AXP's longer-term strength will reassert once the market digests this period of consolidation and rotation."

Previously it was reported that American Express maintained a bullish outlook, supported by ongoing business expansion and favorable technical momentum. The current shift to bearish momentum and institutional selling signals a reversal in market sentiment, making a potential break below the recent volatility support range a key risk for traders to monitor in the days ahead.

Source of Data: AXP Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.