Stock of the Day – American Express
22 December 2025
In today’s stock of the day, let’s take a look at American Express, which has been in a bearish correction since the 12th of December. Importantly, this move lower should not be confused with a trend reversal. The broader structure remains bullish, and the recent decline is shaped like a classic flag pattern, marked with red lines. Flags are typical correction patterns that usually appear after a strong upswing and often resolve in the direction of the prevailing trend.
What makes the current situation interesting is where this correction has stalled. The price stopped exactly at the green horizontal support, which corresponds with the highs from the beginning of December. This is a technically very important area, as former resistance often turns into support. The first test of this level is positive for buyers, showing that demand is present and that sellers are struggling to push the price decisively lower.
From a trading perspective, the setup is quite clear. A buy signal would be triggered if the price continues to defend the green support and then breaks the upper line of the flag, followed by a move back above the black uptrend line. That sequence would confirm that the bearish correction is over and that the primary uptrend is resuming. On the other hand, a daily close below the green horizontal support would signal that the correction is not finished yet, suggesting that traders should stay patient and wait longer for a higher-probability buying opportunity.