In today’s technical analysis, let’s take a look at American Express, which is showing a very clear structure on the hourly chart.
Even though we’re looking at a short-term timeframe, this setup has been developing since the beginning of March, which makes it more meaningful.
The price is moving inside a rectangle pattern marked with yellow lines. This is a classic sideways trend, where the market is consolidating before a larger move.
In this kind of setup, the key is simple. We wait for the breakout.
A move above the upper boundary of the rectangle would generate a signal to buy and suggest the start of a new upward movement.
On the other hand, a break below the lower boundary would trigger a sell signal and open the way for a continuation to the downside.
At the moment, the price is sitting close to the upper resistance and applying pressure. Combined with the broader market sentiment, this slightly favors a bullish breakout scenario.
That said, until the breakout actually happens, it’s still a waiting game. The pattern is clear, and the next move should be decisive.