Will AXP hold $306.37 support amid continued sell signals and market indecision?

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American Express slides 3.73% today

Highlights

American Express reported third-quarter revenue up 9% to $20.1 billion, with GAAP EPS increasing 31% to $5.42.
The company raised its GAAP EPS guidance, announced a $336 million restructuring charge, and will cut about 5% of its global workforce.
Shares of American Express closed down 3.73% to $313.04, with price action under seller pressure and expected to consolidate between $306.37 and $319.71.

Workforce cuts and strong EPS fuel mixed investor response

American Express reported its third-quarter 2026 financial results, with revenue rising 9% year-over-year to $20.1 billion and GAAP earnings per share jumping 31% to $5.42. While the company reaffirmed its full-year revenue growth outlook and raised guidance for GAAP EPS, it also disclosed a $336 million restructuring charge tied to a planned reduction of about 5% of its global workforce. During the quarter, $2.2 billion was returned to shareholders through buybacks and dividends, according to Finance Biggo. Additionally, American Express announced a new partnership with Airbnb to broaden its travel offering, though price action has remained under broader selling pressure.

Support at $306.37 as oversold momentum and resistance coalesce

Technically, AXP is trading below the MA-20 and MA-50 on the hourly chart, and remains under the long-term MA-200. The Ichimoku Kijun at $319.8 serves as immediate resistance. The expected technical range is defined by support at $306.37 and resistance at $319.71. MACD continues to signal strong buy momentum, while ADX maintains a sell bias; RSI stands at 40.26, supporting a sell stance. Additional oscillators, including Stochastic RSI, CCI, and Bull/Bear Power, are all tilted towards oversold conditions and seller dominance, though some divergence points to underlying market indecision.

Rangebound outlook persists without catalyst amid bearish pressure

Looking ahead, AXP is likely to consolidate within the $306.37 to $319.71 range over the near term, with moderate volatility expected. The probability of an upside breakout is estimated at 33%, while the likelihood of a continued move lower is higher. Baseline expectations suggest price will remain rangebound in the absence of a decisive catalyst. A bullish scenario would require a clear move above $319.8 resistance, while a close below the $306.37 support could open the door to further declines.

Anton Kharitonov, analyst at Traders Union, sees American Express combining strong financial results with a cautious outlook as the share price remains under pressure. He notes effective shareholder returns and new business initiatives, but highlights that technicals and sentiment stay on the defensive side. Price is stuck below its major moving averages with downside risk prevailing. "Until AXP reclaims $319.8, I remain cautious and see the path of least resistance as sideways to lower."

Previously it was reported that American Express raised its full-year profit outlook and announced a global workforce reduction as part of a broader effort to balance growth and cost control. In light of the recent earnings beat, restructuring charge, and ongoing technical weakness, attention now turns to whether AXP can hold support at $306.37 or risk further downside if bearish momentum persists.

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.