American Express Co. (AXP) is one of Berkshire’s “Big Four” public investments. After FED approved the company’s 2013 capital plan, it intends to raise its quarterly dividend by 15%, from 20 cents to 23 cents per share. The company would like also to buy back a total of $5 billion of common shares until the end of first quarter 2014.
Now let’s take the story to the charts. We can see that from the 2009 low it continually grew. Its price went over 420 percent up in four years. AXP is also one of the Dow Jones Industrial Average (DJIA) companies, but the Dow only rallied 106%.
Their charts resemble a lot, the lows and tops are made almost in the same time. Still American Express trend seems to signal some fatigue, while DJIA makes new record highs. Looking at the Rising Wedge formed on the stock chart and the big divergences on the 56 periods RSI, we might want to think twice if our intentions were of buying.
There is a possibility that the price will consolidate between the last broken resistance and the 127.2 Fibonacci expansion, at 72$ per share. Only a breakout over this latest level will signal a continuation of the trend.