As consumers become more selective in their spending, restaurants and travel remain bright spots in consumer spending. With American Express’s focus on premium customers who continue to spend in these categories, AXP is positioned to outperform its industry. As they focus on a younger customer base and grow their presence in international markets, AXP has acquired new customers at an accelerated pace. If you look at a chart of AXP below, you can see it’s had an incredible run over the past year, rallying nearly 60% from the Oct 2023 lows, and recently, pulling back 8% from its peak a few weeks ago. As momentum, measured by the Relative Strength Index (RSI), starts to reach oversold conditions, this presents a more attractive risk/reward for adding long exposure within this strong bullish trend. CHART 1. DAILY CHART OF AMERICAN EXPRESS. The RSI is oversold, presenting a more attractive risk/reward scenario for…
